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AB 1882

Safe Delivery Fund Pilot Program.

2025-2026 Regular Session Introduced by Stan Ellis

The Safe Delivery Fund provides targeted reimbursements to eligible California hospitals to cover standby capacity costs for obstetric and related services, ensuring stable access

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (July 1). Re-referred to Com. on APPR.
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Bill Summary · AB 1882

Overview

AB 1882 establishes the Safe Delivery Fund Pilot Program in California to help hospitals maintain standby capacity for obstetric and related services. The program runs through January 1, 2030 and is designed to offset uncompensated standby costs associated with maintaining specialty physician coverage, advanced practice provider coverage, and hospital staffing necessary to safely provide deliveries and related inpatient services.

Purpose and intent

  • Create a targeted funding mechanism to ensure access to maternity care in areas where obstetric services are at risk of being reduced or lost.
  • Provide stable, predictable reimbursements to participating hospitals to cover standby capacity costs (staff, salaries, benefits, and related expenses).
  • Improve access to obstetric, labor and delivery, neonatal, general surgery, and pediatric inpatient services by maintaining essential standby capabilities, particularly in geographically isolated or underserved settings.

Key provisions and changes

  • Establishment of the Safe Delivery Fund Pilot Program within the Department of Health Care Access and Information (HCAI).
  • Eligible facilities: Critical access hospitals that provide obstetric services and meet criteria such as 24/7 readiness, distance (75 miles from the nearest tertiary hospital), caps on inpatient surgeries (no more than 225 annually), active licensure and CMS certification, Medi-Cal contract, and demonstrated geographic isolation with threatened access if obstetric services are removed.
  • Eligible uses of funds: Salaries, benefits, insurance, contracted physician or advanced practice provider compensation, and other expenses related to maintaining standby capacity for specified services (inpatient general surgery, licensed labor and delivery with nursery beds, inpatient pediatrics).
  • Funding and cap: The Safe Delivery Fund may be used to reimburse hospitals, with a maximum of $5,000,000 per hospital per year.
  • Reimbursement methodology: Annually calculate standby costs based on prior-year Medicare/Medi-Cal cost reports, including Medicare cost-based reimbursement, other cost-based payers, and relevant federal disproportionate share hospital payments. Reimbursement per delivery via quarterly payments, using a schedule:
    • 0 deliveries: $25,000
    • 1 delivery: $18,500
    • 2 deliveries: $12,000
    • 3 deliveries: $5,500
    • 4 or more deliveries: $0 The department may use time-study or value-unit methods to allocate costs.
  • Data and audits: By April 1, 2027, and quarterly thereafter, participating hospitals must submit data on deliveries per day, staffing, service availability, quality metrics (at least three maternal/infant indicators), and cost verification. The department may conduct annual audits to ensure funds are used for standby capacity and that eligibility/quality criteria are met.
  • Duration and sunset: The chapter establishing the fund and program expires January 1, 2030, at which point it repeals unless renewed.

Who is affected

  • Hospitals that qualify as critical access obstetric providers located far from tertiary centers and meeting the specified criteria could participate.
  • Patients receiving delivery and related inpatient services at these hospitals, particularly in geographically isolated regions, should experience more reliable access to obstetric care.
  • State agencies (Department of Health Care Access and Information) will administer the program and oversee funding, reporting, and audits.

Procedural/timeline aspects

  • Effective through January 1, 2030 (sunset date).
  • Participation requires ongoing quarterly reporting starting by April 1, 2027.
  • Annual or programmatic audits to verify proper use of funds and continued eligibility.

Related provisions

  • Technical, nonsubstantive changes to existing Health and Safety Code provisions governing local regulation of alcohol or other drug recovery facilities serving six or fewer persons (AB 1882 includes these clarifications).

Compiled from official sources — confirm details with the bill’s official record.

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