SACRAMENTO – Yesterday, Governor Jerry Brown signed Assembly Bill 658 by Assemblyman Scott Wilk, R-Santa Clarita, which will allow hospitals who treat local law enforcement patients for emergency health care services to calculate costs for care according to the most recent approved cost-to-charge ratio from the Medicare Program.
“Non-profit community hospitals, like Henry Mayo, treat hundreds of inmates in their emergency department but do not have a contract with local law enforcement, so the payment they receive for these services is a default rate calculated under current law,” Wilk said. “Hospitals who provide these important services should not be burdened financially due to outdated rates and AB 658 ensures they receive appropriate payments for services. I am pleased that Governor Brown has chosen to support this important measure.”
The bill also gives local law enforcement the ability to approve, or not approve, a hospital's request to use the cost-to-charge ratio when calculating a payment. AB 658 fixes what is considered to be a glitch in the law, so that hospitals, when choosing to go through a process similar to what Henry Mayo undertook, will receive the same payment for services provided to inmates.
AB 658 will take effect on January 1, 2016. This is Assemblyman Wilk's third bill signed into law this month.