Cal. Code Regs. Tit. 22, § 53864 - Financial Standards/Resources
(a) Each plan shall demonstrate fiscal
soundness and maintain adequate financial resources to carry out its
contractual obligations. Such resources shall be determined by the department
and shall include, but not necessarily be limited to, the following:
(1) Tangible net equity as defined in Title
10, section
1300.76
(2) Working capital and current ratio of one
of the following:
(A) A current ration of at
least 1:1, or
(B) Prior
demonstration to the department that the contractor is now meeting financial
obligations on a timely basis and has been doing so for at least the preceding
two years, or
(C) Evidence that
sufficient noncurrent assets, which are readily convertible to cash, are
available to achieve an equivalent working capital ratio of 1:1, if the
noncurrent assets are considered current.
(3) Demonstration through its history of plan
operations that the plan's arrangements for health care are financially sound,
and provide for the achievement and maintenance of a positive cash flow,
including provisions for retirement of existing and proposed
indebtedness.
(4) Enrollment
growth.
(b)
Administrative costs incurred by a plan and its affiliates shall comply with
the requirements of the Knox-Keene Act as set forth in Title 10, section
1300.78. Plans which compensate
their subcontractors on a capitated basis shall comply with title 10, CCR,
section 1300.78 regarding administrative
costs, considering the combined administrative cost of the plan and its
capitated subcontractors for Medi-Cal business.
Notes
2. Repealer of section and NOTE and new section and NOTE filed 3-4-97; operative 3-4-97. Submitted to OAL for printing only pursuant to Section 147, SB 485 (Ch. 722/92) (Register 97, No. 10).
Note: Authority cited: Sections 10725, 14105, 14124.5 and 14312, Welfare and Institutions Code. Reference: Sections 14087.3, 14087.4 and 14450, Welfare and Institutions Code.
2. Repealer of section and Note and new section and Note filed 3-4-97; operative 3-4-97. Submitted to OAL for printing only pursuant to Section 147, SB 485 (Ch. 722/92) (Register 97, No. 10).
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.