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​​​​​​​​​​​​​Hospital Quality Assurance Fee ​Program

​The Third Party Liability and Recovery Division oversees fee collection and payments to private hospitals for the Hospital Quality Assurance Fee Program.

HQAF VII

Federal Approval

Final federal approval for fee collection: September 29, 2022
Final federal approval for fee-for-service payments: September 29, 2022
Final federal approval for managed care payments: May 10, 2022

HQAF VII Program Period (January 1, 2022 – December 31, 2022): Fee and Payment Cycles


​​Cycle​
​Date of Service
by State Fiscal Year
​Cycle
(Date of Service)
​Fee Due
​Checkwrite Date
​Cycle 1
​2021-22
​1/1/2022 - 3/31/2022
​11/9/2022
​11/21/2022
​Cycle 2
​​2021-22
​4/1/2022 - 6/30/2022
​12/21/2022
​1/3/2023
​Cycle 3
​2022-23
​7/1/2022 - 9/30/2022
​1/25/2023
​2/6/2023
​Cycle 4
​2022-23
​10/1/2022 - 12/31/2022
​5/3/2023
​5/15/2023
​MC1 PT
​2021/22 - 2022/23
​1/1/2022 - 12/31/2022
​8/16/2023
​9/15/2023
​MC1 DPa
​2021-22
​1/1/2022 - 6/30/2022
​2/28/2024
​3/15/2024
​MC1 DPb
​2022-23
​7/1/2022 - 12/31/2022
​8/28/204
​9/15/2024​


  • These dates are estimates only and are subject to change.
Please visit the Medi-Cal Third Party Liability and Recovery page for instructions on how to send your fees via Electronic Funds Transfer.

HQAF VI

Federal Approval

Final federal approval for fee collection: February 14, 2020
Final federal approval for fee-for-service payments: February 25, 2020
Final federal approval for managed care payments:

  • June 12, 2020 (July 1, 2019 – December 31, 2020)

  • October 8, 2021 (January 1, 2021 – December 31, 2021)​​

HQAF V created by Proposition 52

SB 239 (Chapter 657, Statutes of 2013) imposed a Hospital Quality Assurance Fee (HQAF) on certain general acute care hospitals, and was made permanent by the passage of Proposition 52 in November 2016. Pursuant to California Welfare & Institutions Code section 14169.53, fees generated by the HQAF program are used to provide private hospitals with federally matched supplemental payments for inpatient and outpatient services while also generating funding for children’s health care coverage, providing direct grants to public hospitals, and reimbursing the DHCS for the direct costs of administering the program.

Federal Approval

Final federal approval for fee collection: December 14, 2017
Final federal approval for fee-for-service payments: December 18, 2017
Final federal approval for managed care payments: Pending

HQAF created by SB 239

SB 239 established a program that imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit for the period of January 1, 2014 - December 31, 2016. 

Federal Approval

Final federal approval for fee collection: December 6, 2014
Final federal approval for fee-for-service payments: December 6, 2014
Final federal approval for managed care payments: Pending

HQAF created by SB 335

SB 335 established a program that imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit for the period of July 1, 2011-December 31, 2013.

Federal Approval

Final federal approval for fee collection: June 22, 2012
Final federal approval for fee-for-service payments: June 22, 2012
Final federal approval for managed care payments: Received

HQAF created by SB 90

SB 90 set up a program that imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit (UPL) for the period of January 1, 2011 - June 30, 2011.

Federal Approval

Final federal approval for fee collection: May 18, 2011
Final federal approval for fee-for-service payments: May 18, 2011
Final federal approval for managed care payments: December 29, 2011

HQAF created by AB 1383

AB 1383, amended by AB 1653 and SB 208, set up a program that imposes a Quality Assurance Fee (QAF) on certain general acute care hospitals in order to make supplemental and grant payments and increased capitation payments to hospitals up to the aggregate upper payment limit (UPL) for the period of April 1, 2009 - December 31, 2010.

Federal Approval

Final federal approval for fee collection: September 22, 2010
Final federal approval for fee-for-service payments: October 8, 2010
Final federal approval for managed care payments: December 22, 2010 and January 18, 2011

Send a Question to the QAF Program

Submit questions regarding the QAF programs or payments.

All other questions, comments, or concerns should be emailed to HQAF@dhcs.ca.gov​​.

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Last modified date: 11/21/2022 3:12 PM