Medi-Cal: South Los Angeles.

Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income persons receive health care benefits. The Medi-Cal program is, in part, governed and funded by federal Medicaid provisions. Existing law authorizes the California Medical Assistance Commission to negotiate selective provider contracts with eligible hospitals to provide inpatient hospital services to Medi‑Cal beneficiaries. Existing law also provides for the provision of inpatient and outpatient hospital services under the Medi-Cal program on a fee-for-service basis. Existing law provides for supplemental payments to hospitals providing Medi-Cal services in accordance with prescribed provisions of law. Existing law requires the County of Los Angeles, for the 2007–08, 2008–09, and 2009–10 state fiscal years, to make intergovernmental transfers to fund the nonfederal share of increased Medi-Cal payments to those private hospitals that serve the South Los Angeles population formerly served by Los Angeles County Martin Luther King, Jr.-Harbor Hospital. This bill would enact Medi-Cal funding provisions for a new hospital, as defined, that would be a private nonprofit entity that would serve the population of South Los Angeles formerly served by the Los Angeles County Martin Luther King Jr.-Harbor Hospital. The bill would authorize the hospital to negotiate an inpatient hospital services contract with the commission, as provided for under existing law, and would contain provisions relating to inpatient hospital services reimbursement if a contract is not negotiated under these provisions. The bill would also contain provisions relating to reimbursement for outpatient hospital services provided by the new hospital and to the making of supplemental payments to the new hospital. The bill would establish various conditions for its implementation, including the receipt of all necessary federal approvals and the receipt of federal financial participation.