Bill > SB246

This bill aims to expand graduate medical education (GME) payments within California's Medi-Cal program by creating a new funding mechanism for district and municipal public hospitals (DMPHs), which are currently not receiving the same level of GME support as designated public hospitals (DPHs). The bill would require the Department of Health Care Services to make additional Medi-Cal payments to DMPHs and their affiliated government entities to recognize the managed care share of graduate medical education costs, using a payment methodology similar to the one used for DPHs. These payments would include direct and indirect GME components to support the costs of operating medical education programs and associated teaching expenses. The bill establishes a new District and Municipal Public Hospitals Graduate Medical Education (DMPH GME) Special Fund, which will be funded through voluntary intergovernmental transfers from the hospitals themselves, with no state General Fund money being used. The department is authorized to seek federal approvals for these payments, with implementation planned no earlier than January 1, 2026, and the Director of Health Care Services can modify requirements to maximize federal financial participation or meet federal requirements. Importantly, the bill ensures that all intergovernmental transfers are considered voluntary and that if federal financial participation is not available, transferred funds will be returned to the contributing entities.

Budget and Finance, Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB246