Why did Simi Valley Hospital discontinue its Medi-Cal fee-for-service contract?
The low reimbursement rates from Medi-Cal hinder our ability to reinvest in the community with new equipment and technology purchases, building enhancements and community education. Our mission to the community is being severely impacted by the current reimbursement structure that Medi-Cal provides, which is one of the lowest in the country. Our goal in negotiating a new Medi-Cal agreement was to obtain fair compensation for indirect costs associated with care—such as administrative, financial and facility expenses. The previous agreement only reimbursed Simi Valley Hospital for direct costs, such as nursing, clinical care services and medical supplies. Simi Valley Hospital has been negotiating with the California Medical Assistance Commission (CMAC)—the organization that negotiates Medi-Cal contracts on behalf of the state of California—to reach an agreement that would adequately provide for the direct and indirect costs associated with health care services provided. At this time, Sim
