Due to a severe cash flow shortage, the State of California will implement short-term payment delays to Medi-Cal institutional providers effective March 1, 2012 (the first warrant release date of March). Reimbursement for Medi-Cal institutional providers, except for clinics, designated public hospitals, and Local Educational Agencies (LEAs), will be held based on the following schedule:

• Payments scheduled for a warrant release date of March 1, 2012 (Electronic Funds Transfer [EFT] date of March 5, 2012) will be held until the warrant release date of March 15, 2012 (EFT date of March 19, 2012) and will be paid along with all services normally scheduled for payment that week.
• Payments scheduled for a warrant release date of March 8, 2012 (EFT date of March 12, 2012) will be held until the warrant release date of March 22, 2012 (EFT date of March 26, 2012) and will be paid along with all services normally scheduled for payment that week.
• Payments to Medi-Cal non-institutional providers will not be held. Please note that the list below is limited to providers whose claims are processed by the Medi-Cal Fiscal Intermediary (FI).

To ensure implementation of this proposal, the Department of Health Care Services (DHCS) will hold reimbursement to the following Medi-Cal institutional providers:

Medi-Cal Institutional Providers
Adult Day Health Care Centers (ADHC)
Assistive Device and Sick Room Supply Dealers
Blood Banks
Clinical Laboratories
Fabricating Optical Laboratory/Prison Industry Authority (PIA)
Home Health Agencies (HHA)
Community Hospital Outpatient Departments
Community Hospital Inpatient (with the exception of designated public hospitals)
Long-Term Care (LTC) facilities
Pediatric Subacute Care - LTC
Ground Medical Transportation
Genetic Disease Testing
Air Ambulance Transportation Services
Certified Hospice Service
Home and Community Based Services (HCBS) Nursing Facilities
Mental Health Inpatient
County Hospital Inpatient (with the exception of designated public hospitals)
County Hospital Outpatient
Multipurpose Senior Services Program (MSSP)
Residential Care Facilities for the Elderly

The following institutional providers are exempt from the temporary payment withhold:
Indian Health Clinics
Rural Health Clinics
Federally Qualified Health Centers
Free Clinics
Community Clinics
Chronic Dialysis Clinics
Multi-Specialty Clinics
Surgical Clinics
Exempt from Licensure Clinics
Rehabilitation Clinics
County Clinics Not Associated with a Hospital
Birthing Centers – Primary Care Clinics
Clinic Otherwise Undesignated
Alternate Birthing Centers – Specialty Clinics
Expanded Access to Primary Care Clinics
Designated Public Hospitals
Local Education Agencies

DHCS understands that this difficult decision is painful for our valued provider partners, but Medi-Cal, as the state’s second largest General Fund expenditure, must be part of the state’s budget solution.