Medi-Cal Update: June Fee-for-Service Provider Payment Delay

The California Department of Health Care Services (DHCS) recently announced it will delay payments for one week at the end of June and pay those claims out of the 2010-2011 fiscal year budget. This means that the last checkwrite in June 2010 will be delayed until the start of the next fiscal year that begins July 1, 2010. Providers should make cash flow plans and plan for potential budget problems in California.

The delay of the checkwrite payment normally scheduled for June 24, 2010, will impact providers that render services to the following programs:

• Medi-Cal
• Healthy Families
• Child Health and Disability Prevention
• California Children’s Services
• Expanded Access to Primary Care
• Genetically Handicapped Persons Program
• Abortion Services

Because this year’s budget is so contentious, it is possible that physicians will be subject to additional payment delays if the Legislature’s budget talks go well beyond the constitutional June 15 deadline. According to the State Controller’s office, a budget impasse would not immediately affect Medi-Cal providers. Medi-Cal payments would continue until the state’s cash reserves are completely exhausted. Claims for services provided under the other programs listed above may, however, be further delayed if a new budget is not in place by July 1.

The last checkwrite in June 2010 will be delayed until the start of the next fiscal year that begins July 1, 2010. The delay of the checkwrite payment normally scheduled for June 24, 2010, will impact providers that render services to the following programs:


The electronic funds transfer (EFT) settlement date for those affected by the checkwrite delay will be July 2, 2010. Providers that render services for Cancer Detection Programs: Every Woman Counts will not be affected by the checkwrite delay and will receive payments as normally scheduled.

 Posted by Tracy Green, Esq.  Any questions should be directed to Tracy Green, a very experienced Los Angeles physician attorney, Los Angeles Medi-Cal attorney and Los Angeles health care attorney. You can email her at tgreen@greenassoc.com or call her at 213-233-2261.

The firm focuses its practice on the representation of licensed professionals, individuals and businesses in civil, business, administrative and criminal proceedings. They have a specialty in representing health care providers   in California and throughout the country. Their website is: http://www.greenassoc.com/