SECTIONS 16920-16924 - California Statutes

WELFARE AND INSTITUTIONS CODE

SECTION 16920-16924

16920. (a) It is the intention of the Legislature to appropriate a
portion of the 1988-89 fiscal year one-time revenues from the
Hospital Services Account for distribution to each county and
noncounty hospital which provides uncompensated care to unsponsored
patients, with payments based upon the proportion of each hospital's
share of the 1988 calendar year statewide total of uncompensated care
rendered to unsponsored patients.
(b) It is the intention of the Legislature to partially and
proportionately compensate each hospital that provides care to
unsponsored patients and to provide an economic incentive for all
hospitals to provide, maintain, and enhance access to care.
(c) For purposes of this section, "uncompensated care charges"
means the sum of the charges related to patients falling within
charity care and 50 percent of bad debts, as reported quarterly to
the office pursuant to Section 128740 of the Health and Safety Code.
The office shall use the data as published by the office for each
quarter of 1988.
(d) As used in this section, "uncompensated care costs" means that
amount calculated by applying an overall hospital cost-to-charge
ratio, calculated by dividing gross operating expenses by gross
inpatient and outpatient revenue, as reported quarterly to the
office, to uncompensated charges.

16921. Funds appropriated for the purposes of this chapter shall be
allocated and disbursed to county and noncounty hospitals which meet
any of the following requirements:
(a) Operate an emergency room pursuant to Section 1317 of the
Health and Safety Code.
(b) Adhere to the emergency care requirements of subdivision (e)
of Section 1317 of the Health and Safety Code.
(c) Treat county indigent patients.
(d) Are childrens' hospitals for purposes of this part.
(e) Are small and rural hospitals as defined in Section 124840 of
the Health and Safety Code.

16922. (a) In order to determine the allocation for each eligible
hospital of the amount appropriated for the purposes of this chapter,
the office shall do all of the following:
(1) Compute the total uncompensated care costs for each eligible
hospital.
(2) Compute the total uncompensated care costs for all eligible
hospitals.
(3) Divide each hospital's uncompensated care costs as computed in
paragraph (1) by the total uncompensated care costs as computed in
paragraph (2).
(b) The result shall be multiplied by the total funds specified
for hospital payments pursuant to Section 16921 to determine each
hospital's payment for uncompensated care. That amount shall be
allocated in one lump sum to each hospital by the Controller pursuant
to subdivision (a).

16923. The office shall do all of the following:
(a) Review and process the quarterly financial and utilization
data report and calculate the distribution to be made within 30 days
after October 2, 1989.
(b) Make the calculations available to the Controller within 40
days after October 2, 1989.
(c) Incorporate the quarterly financial and utilization data
reports into the field audit function currently utilized by the
office.
(d) Develop procedures to recover funds determined to have been
spent in a manner inconsistent with this chapter and Article 2
(commencing with Section 30121) of Chapter 2 of Part 13 of Division 2
of the Revenue and Taxation Code.

16924. The Controller shall distribute to hospitals the funds
appropriated for the purposes of this chapter within 60 days from the
effective date of this chapter provided that the office has
certified that the hospital is in compliance with this section.