AB 2355
Medi-Cal.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Health
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Sign in to take action- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill directs the California Department of Health Care Services to develop a ‘hospital value strategy’ for the Medi-Cal program. The strategy aims to improve access to hospital services, incentivize appropriate care, and enhance health outcomes for Medi-Cal recipients. Specifically, the department must consult with a wide range of stakeholders, including hospitals, cities, counties, and relevant organizations, and prioritize the needs of rural, critical access, and public hospitals. This strategy is funded through appropriations outlined in the Budget Act of 2025.
Key provisions
- Requires the Department of Health Care Services to develop a comprehensive hospital value strategy.
- Mandates stakeholder engagement, including hospitals, cities, counties, and relevant organizations.
- Prioritizes the needs of rural, critical access, and public hospitals within the strategy.
- The strategy is linked to specific budget items (Item 4260-001-0001, Item 4260-001-0143, and Item 4260-001-0890) of the Budget Act of 2025.
- Establishes Section 14000.02 in the Welfare and Institutions Code.
Who is affected
- Medi-Cal recipients
- Hospitals (particularly rural, critical access, and public hospitals)
- Cities and counties
- Healthcare organizations
- The California Department of Health Care Services
Notable changes
- Adds a specific requirement for stakeholder engagement in the development of the hospital value strategy.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Arguments in favor
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AB2355:v99#DOCUMENT
Bill Start
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2355
| Introduced by Assembly Member Jeff Gonzalez (Principal coauthor: Assembly Member Hadwick) (Coauthor: Assembly Member Gallagher) (Coauthors: Senators Alvarado-Gil, Dahle, Jones, and Ochoa Bogh) |
| February 19, 2026 |
An act to add Section 14000.02 to the Welfare and Institutions Code, relating to Medi-Cal.
LEGISLATIVE COUNSEL'S DIGEST
AB 2355, as introduced, Jeff Gonzalez. Medi-Cal.
Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed by, and funded pursuant to, federal Medicaid program provisions. Existing law, the Budget Act of 2025, appropriates funds to the department to create a comprehensive hospital value strategy to advance access to high-quality inpatient and outpatient hospital services, financially incentivize appropriate care delivery, and improve health outcomes for Medi-Cal beneficiaries.
In developing the comprehensive hospital value strategy described above, this bill would require the department to engage with relevant stakeholders with firsthand experience, including, but not limited to, hospitals, cities, counties, cities and counties, organizations representing these groups, and other affected stakeholders as the department deems necessary. The bill would require the department to ensure that the comprehensive hospital value strategy includes a focus on rural hospitals, critical access hospitals, and public hospitals.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 14000.02 is added to the Welfare and Institutions Code, to read:
14000.02.
In developing a comprehensive hospital value strategy pursuant to Item 4260-001-0001, Item 4260-001-0143, and Item 4260-001-0890 of the Budget Act of 2025, the department shall engage with relevant stakeholders with firsthand experience, including, but not limited to, hospitals, cities, counties, cities and counties, organizations representing these groups, and other affected stakeholders as the department deems necessary. The department shall ensure that the comprehensive hospital value strategy includes a focus on rural hospitals, critical access hospitals, and public hospitals.