Report 2011-104 Recommendation 4 Responses

Report 2011-104: Medi-Cal Managed Care Program: The Departments of Managed Health Care and Health Care Services Could Improve Their Oversight of Local Initiatives Participating in the Medi-Cal Two-Plan Model (Release Date: December 2011)

Recommendation #4 To: Health Care Services, Department of

To make its financial solvency reviews more efficient and reduce the risk of errors, Health Care Services should coordinate with Managed Health Care when analyzing local initiatives' consolidated financial reports.

Agency Response*

On November 13, 2013, the Capitated Rates Development Division (CRDD) revised current policies and procedures pertaining to the monthly and quarterly financial analyses. CRDD will utilize the financial information available on the website of the Department of Managed Health Care (DMHC) as the primary source of information when completing CRDD's monthly and quarterly financial analyses. These changes will effectively eliminate the recreation of financial ratios by CRDD which has already been computed and provided through the DMHC financial website.

  • Response Type†: Annual Follow Up
  • Completion Date: November 2013
  • Response Date: November 2013

California State Auditor's Assessment of Status: Fully Implemented


Agency Response*

Health Care Services implemented a policy in February 2012 to obtain Managed Health Care's financial information from its Web site and to use this information in its newly developed automated system to calculate various financial ratios. However, under this new policy Health Care Services continues to recreate the financial ratios that Managed Health Care's automated system currently provides. (See 2013-406, p. 78)

  • Response Type†: 1-Year
  • Response Date: December 2012

California State Auditor's Assessment of Status: Pending


All Recommendations in 2011-104

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.


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