California Office of Statewide Health Planning & Development

General Links

• Subscribe to Updates
• Acronyms
• Contact List
• Help Tools
• Public Records Request
• Site Map
• Contact Webmaster

FAQs: Hospital Community Benefit Programs

1. What was the impetus for the hospital community benefit legislation (Senate Bill 697)?
2. What is OSHPD's role under the hospital community benefit program?
3. Which hospitals must comply with the hospital community benefit legislation?
4. Are any not-for-profit hospitals exempt from the hospital community benefit legislation?
5. What are the basic requirements of the law?
6. When are community benefit plans due to OSHPD?
7. What did OSHPD address in its 1998 Report to the Legislature?
8. How can I obtain a copy of OSHPD's 1998 Senate Bill 697 Report to the Legislature?
9. How can I obtain a copy of a hospital's community benefit plan?
10. Should Medicare payment shortfalls be reported as a community benefit?

To submit a question, please fill out our Submit Question form.

Q1. What was the impetus for the hospital community benefit legislation (Senate Bill 697)?

A. The California Association of Hospitals and Health Systems (now California Healthcare Association) and the California Association of Catholic Hospitals sponsored Senate Bill 697 in response to challenges of not-for-profit hospitals in other states. The bill was viewed as an opportunity for California's not-for-profit hospitals to report on the broad range of benefits provided to their communities.
Back to the top

Q2. What is OSHPD's role under the hospital community benefit program?

A. OSHPD is the equivalent of the "public library" for private, non-profit hospitals' community benefit plans. Various operating units throughout OSHPD are involved in handling the plans and related issues. OSHPD's Accounting and Reporting systems Section receives the plans and is working with other units and stakeholders to develop more standardized reporting formats. The Healthcare Information Resource Center handles public requests for copies of community benefit plans. The Healthcare Quality and Analysis Division is responsible for conducting policy analysis on unresolved issues. the Healthcare Workforce Development Division is responsible for working with the Healthcare Information Division in synthesizing information made available through the community needs assessment process and distributing it to local entities in their community capacity building efforts.
Back to the top

Q3. Which hospitals must comply with the hospital community benefit legislation?

A. Private, not-for-profit acute care hospitals including psychiatric hospitals must comply with the legislation.
Back to the top

Q4. Are any not-for-profit hospitals exempt from the hospital community benefit legislation?

A. Not-for-profit hospitals that are exempt from the legislation include: designated small and rural hospitals, public hospitals including county, district, and the University of California, Shriner Children's hospitals, and facilities licensed as chemical dependency and rehabilitation (CDRH) hospitals.
Back to the top

Q5. What are the basic requirements of the law?

A. Under the community benefit law, a private not-for-profit hospital in California is required to:

• conduct a community needs assessment every three years
• develop a community benefit plan in consultation with the community
• annually submit a copy of its plan to the Office of Statewide Health Planning and Development (OSHPD.)

Back to the top

Q6. When are community benefit plans due to OSHPD?

A. A hospital is required to submit a copy of its plan to OSHPD 150 days after its fiscal year end.
Back to the top

Q7. What did OSHPD address in its 1998 Report to the Legislature?

A. The report includes a review of the plans and community benefits described, and public comment summaries from statewide community forums. The report also includes recommendations for future planning and reporting.
Back to the top

Q8. How can I obtain a copy of OSHPD's 1998 Senate Bill 697 Report to the Legislature?

A. You can download a copy of the Report, or call the Healthcare Information Resource Center at (916) 326-3802.
Back to the top

Q9. How can I obtain a copy of a hospital's community benefit plan?

A. Ideally, an individual hospital should make copies of its plan available to its community. You can also obtain copies of plans from OSHPD's Healthcare Information Resource Center. They can be reached at:

400 R Street, Room 200
Sacramento, CA 95811
Telephone: (916) 326-3802,
FAX (916) 324-9242
E-mail to: HIRC
Back to the top

Q10. The Industry standard is to no longer consider Medicare payment shortfalls as a community benefit.  Should we follow this standard or the current statute when submitting our community benefit plans to OSHPD?

Section 127345 (c) (1)of the Health and Safety Code still requires including the unreimbursed cost (payment shortfall) of providing services to patients eligible for Medicare as a community benefit.  Until this statute is amended, hospitals must continue to include Medicare payment shortfalls as a community benefit when reporting to OSHPD.  It is suggested, however, that total quantifiable community benefits be reported with and without the Medicare payment shortfall, so that the needs of all parties can be met.
Back to the top