Gov. Brown Signs New Law Clarifying Billing Process for Health Centers

Thursday, September 27, 2018

Proposal by Gonzalez Fletcher Will Ensure that Community Health Centers (CHCs) Provide Timely Care to Patients


SACRAMENTO(Thursday, September 27, 2018) – A new law authored by California State Assemblywoman Lorena Gonzalez Fletcher (D-San Diego) that clarifies and streamlines the billing process for health centers under a consolidated license was signed by Governor Brown.


“We created the consolidated license process for community health centers so that they could expand their services to meet community needs,” Assemblywoman Gonzalez Fletcher said. “We have to ensure that these centers are able to streamline billing processes so they can continue their work.”


In 2016, AB 2053, authored by Assemblywoman Gonzalez Fletcher, created a consolidated license process for CHCs. Under this bill, CHCs were granted the option to incorporate additional physical locations within a certain radius of their existing licensed facilities under a single consolidated license.


By granting health centers the ability to consolidate new facilities under their existing licenses, CHCs were able to consolidate their administrative functions and are now able to expand services to meet community needs in a streamlined and timely manner.


Despite the consolidated license process, health centers are not able to include the additional facilities under the existing licensed facilities’ prospective payment system (PPS) rate, which prevents centers from billing accordingly. AB 2428 will now allow CHCs to share administrative functions, and bill the PPS under a shared rate of the existing site or establish a separate rate for the consolidated site.


AB 2428 passed the Senate with a 39-0 vote and the Assembly with a 76-0 vote. The new law will take effect Jan. 1, 2019.


For more information on this issue or to schedule an interview with Assemblywoman Gonzalez Fletcher, contact Mary Latibashvili at (415) 902-3421. 


Assemblywoman Lorena Gonzalez Fletcher represents California’s 80th Assembly District, located in southern San Diego County, including the cities of San Diego, Chula Vista, and National City. She serves as Chair of the Assembly Committee on Appropriations, Chair of the Assembly Select Committee on Women in the Workplace, and Vice Chair of the California Latino Legislative Caucus. For more information on Assemblywoman Lorena Gonzalez Fletcher visit