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Other Budget Issues

Last Updated: 5/2/2011
Budget Issue: Diagnosis Related Group Payment System
Program: Department of Health Care Services
Finding or Recommendation: Recommend approval of $860,000 total funds ($344,000 General Fund) and seven two-year limited-term positions in the Safety Net Financing Division. We recommend denial of five positions for Audits and Investigations (A & I) and the redirection of five existing A & I Adult Day Health Care audit staff for two-year limited terms.
Further Detail

The Governor requests about $1.2 million total funds ($480,000 General Fund) and eleven positions (seven in the Safety Net Care Financing Division and five in Audits and Investigations) to support the development and implementation of a Diagnosis-Related Groups (DRG) Payment System. The positions are necessary to meet state requirements to move forward with the new DRG system.  This new system will also help the department meet federal health care reform requirements.  Due to the pending elimination of the Adult Day Health Care (ADHC) benefit, ADHC Audits and Investigations (A & I) workload should significantly decrease. Therefore, we believe a redirection of some existing A & I staff is appropriate.  Currently, more than 20 A & I positions are approved for ADHC related audits.