JurisdictionCaliforniaCode HSCHealth and Safety Code - HSC
Div. 107.DIVISION 107. HEALTH CARE ACCESS AND INFORMATION
Part 2.PART 2. HEALTH POLICY AND PLANNING
Ch. 2.5.CHAPTER 2.5. Fair Pricing Policies
Art. 1.ARTICLE 1. Hospital Fair Pricing Policies
This text of California § 127436. (127436. (Amended by Stats. 2024, Ch. 511, Sec. 7.)) is published on Counsel Stack Legal Research, covering California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)Upon promulgation of regulations as required in subdivisions (b) and (c) no later than January 1, 2024, the Director of the Department of Health Care Access and Information shall impose an administrative penalty for each violation against a hospital that fails to comply with this article, unless the administrative penalty is waived or reduced by the department in the interest of fairness. For purposes of this section, multiple violations identified during the same investigation shall constitute a single violation for purposes of assessing an administrative penalty.
(b)Upon receipt of a complaint by a patient that a hospital has not followed the requirements of Sections 127405
to 127435, inclusive, the director shall do all of the following:
(1)Review the patient’s eligibility f
Free access — add to your briefcase to read the full text and ask questions with AI
(a)
Upon promulgation of regulations as required in subdivisions (b) and (c) no later than January 1, 2024, the Director of the Department of Health Care Access and Information shall impose an administrative penalty for each violation against a hospital that fails to comply with this article, unless the administrative penalty is waived or reduced by the department in the interest of fairness. For purposes of this section, multiple violations identified during the same investigation shall constitute a single violation for purposes of assessing an administrative penalty.
(b)
Upon receipt of a complaint by a patient that a hospital has not followed the requirements of Sections 127405
to 127435, inclusive, the director shall do all of the following:
(1)
Review the patient’s eligibility for charity care or financial assistance under the hospital’s published financial assistance policy in effect at the time the patient was first billed.
(2)
Review the hospital’s compliance with this article.
(3)
If, after completing the actions in paragraphs (1) and (2), the director believes that the hospital may have violated this article, issue a notice to the hospital describing the alleged violation. The notice shall state all of the facts supporting the alleged violation. The hospital shall have 30 days after issuance of the notice to file a response with the director.
(4)
If, after considering all of the information included in any response filed by the hospital, the director determines that a violation has occurred, assess an administrative penalty. The administrative penalty may be up to forty thousand dollars ($40,000), which amount shall be adjusted every five years to reflect the percentage change in the calendar year average, for the five-year period, of the medical care index of the Consumer Price Index, as published by the United States Bureau of Labor Statistics. The department shall promulgate regulations establishing criteria to determine the amount of an administrative penalty. The criteria shall include, at a minimum, all of the following:
(A)
The actual financial harm to patients, if any.
(B)
The nature, scope, and severity of the
violation, including whether the hospital’s policies, postings, and screening practices are in compliance with Sections 127405 to 127435, inclusive, or whether the violation was a mistake that resulted in a violation of those policies and practices.
(C)
The facility’s history of compliance with related state and federal statutes and regulations.
(D)
Factors beyond the facility’s control that restrict the facility’s ability to comply with this chapter or the rules and regulations promulgated thereunder.
(E)
The demonstrated willfulness of the violation.
(F)
The extent to which the facility detected the violation and took steps to immediately correct the
violation and prevent the violation from recurring.
(G)
The special circumstances of small and rural hospitals, as defined in Section 124840, if that consideration is needed to protect access to quality care in those hospitals.
(5)
Notify the patient of the violation and the patient’s right to reimbursement pursuant to Section 127440.
(6)
Begin collection efforts for the penalty after the deadline to appeal pursuant to subdivision (c) has passed, or, if the hospital files an appeal, when all appeals have been exhausted and the department’s findings have been upheld.
(c)
The department shall promulgate regulations to establish a process whereby a hospital may
appeal the director’s determination that a violation has occurred or the amount of any penalty assessed, subject to the following requirements:
(1)
A hospital shall have 30 days from issuance to appeal any determination or penalty.
(2)
A hospital may submit any relevant evidence during the appeal process.
(3)
The department shall provide the patient who filed a complaint with timely notice of the appeal and a copy of any evidence submitted by the hospital, and offer the patient 30 days to submit a response, including any additional evidence in support of the complaint.
(4)
The department shall consider all relevant evidence.
(5)
The department may reduce or waive an assessment in the interest of fairness.
(6)
The department may reduce or waive a penalty if a violation was due to factors beyond the hospital’s control, such as a patient failing to provide accurate information or an unauthorized person removing signage from hospital walls.