The California Association for Health Services at Home Applauds Governor Newsom and the State Legislature’s Commitment to Fund Private Duty Nursing as Part of New Budget Deal

Business Wire

Investments in the Managed Care Organization Provider Tax will provide a funding pathway for continuous skilled nursing care for medically complex patients under Medi-Cal at home

SACRAMENTO, Calif.--(BUSINESS WIRE)--
Late last week, the California State Legislature voted to approve the Managed Care Organization (MCO) Provider Tax package as part of the state’s new budget agreement. Included in the MCO package is a $62 million dollar investment in private duty nursing (PDN), which will help improve services for medically fragile pediatric patients.

“We applaud Governor Newsom and the state legislature for their actions to prioritize in-home comprehensive care for California’s medically complex children and allow them to live at home with their families,” said Dean Chalios, President & CEO of the California Association for Health Services at Home (CAHSAH). “Currently, there are more than 1,000 families that are unable to take their children home from the hospital due to a lack of available private duty nurses. Now with a commitment to fund private duty nursing, we can help bring these children out of the hospital and ensure they receive the long-term, comprehensive and cost-effective care they need from home.”

Investments in the MCO provider tax will maintain funding for Medi-Cal providers. As stipulated in the budget agreement, a $62 million dollar investment in PDN will be fully funded by January 1, 2026. This investment will generate a savings of at least $175 million to the state.

A longtime champion and advocate for some of California’s most medically vulnerable patients is Senator Caroline Menjivar (D-San Fernando Valley). Senator Menjivar has worked closely with CAHSAH to create a funding pathway for PDN in the home.

“California is experiencing a profound nursing shortage, making access to care a struggle, even in the most critical situations. Many families are unable to bring their medically fragile children home from the hospital, forcing little ones to spend their first, second, and even third birthdays in the hospital,” said Senator Menjivar. “The inclusion of private duty nursing in the state budget’s MCO package is not only a just investment, allowing children to be at home with their families while receiving vital care, but it also saves California significant money compared to the exorbitant costs of keeping kids in hospitals long-term.”

“We are immensely grateful to Senator Menjivar for her leadership,” said Chalios. “Because of her commitment, California’s medically complex and vulnerable patient population will be able to receive the care they both need and deserve.”

The California Association for Health Services at Home (CAHSAH) is a nonprofit association representing California's licensed home health, home care, and hospice providers across the state. Established in 1966, CAHSAH is one of the oldest and largest state home care associations in the nation with a long tradition of service dedicated to promoting quality home care and enhancing the effectiveness of the home care industry.

CAHSAH represents hundreds of provider locations including Medicare Certified and licensed home health agencies, hospices, providers of non-medical personal care service in the home, home infusion pharmacies, and over 100 affiliate members including suppliers of products, computer companies, consulting firms, and insurance providers.