California is weighing stiff penalties for hospitals and other healthcare entities that don’t stay under state spending limits, potentially levying hundreds of millions of dollars in fines if these providers don’t take steps to rein in rising healthcare costs. If the state Office of Health Care Affordability adopts the fines next week, hospitals, medical groups, insurers, and others could face penalties that amount to as much as 125% of the total they spend above the state’s annual growth targets. The penalty proposal comes after healthcare entities in California were asked to limit growth by 3.5% last year and ramp down to 3% by 2029.
Read the full article: California Weighs Penalties for Healthcare Providers That Don’t Rein in Costs //
Source: https://kffhealthnews.org/health-industry/high-healthcare-costs-hospitals-state-spending-limits-california-fines/