Report 2006-035 Recommendations and Responses in 2012-041

Report 2006-035: Department of Health Services: It Has Not Yet Fully Implemented Legislation Intended to Improve the Quality of Care in Skilled Nursing Facilities

Department Number of Years Reported As Not Fully Implemented Total Recommendations to Department Not Implemented After One Year Not Implemented as of Most Recent Response
Department of Health Care Services 5 14 13 1

Recommendation To: Health Care Services, Department of

To provide more complete information to the Legislature on the reimbursement rate and fee systems, Health Services should include information on any savings to the General Fund in the reports its licensing division is required to prepare.


DHCS will not be able to implement recommendation No 1 (2006-035, February 2007), the recommendation that general fund savings associated with the AB1629 rate-setting methodology and quality assurance fee (QAF) be noted in report the licensing division is required to prepare. General fund savings can no longer be determined as a result of the AB1629 methodology having significantly changed facility spending practices when compared to the previous rate setting methodology. Specifically, the previous methodology, which was a flat-rate methodology, reimbursed facilities at the same rate, regardless of their spending patterns, whereas the AB 1629 methodology, which is a facility-specific methodology, reimburses facilities based on their individual costs, which encourages facilities to increase spending to improve their infrastructure. Since the AB 1629 methodology has been in place for six years and current spending patterns have changed significantly from the previous methodology, a comparison of the two different methodologies is no longer valid.

  • California State Auditor's Assessment of Status: Will Not Implement
  • Response Date: October 2012

Current Status of Recommendations

All Recommendations in 2012-041