Governor Newsom and the State Legislature Commit to Fund Private Duty Nursing as Part of New Budget

On Thursday, June 27, the California Legislature voted to approve the Managed Care Organization (MCO) Provider Tax package as part of the state’s new budget agreement. Included in the MCO package is a $62 million dollar investment in private duty nursing (PDN), which will help improve services for medically fragile pediatric patients.

CAHSAH is very grateful to Governor Newsom and the legislature for their actions to prioritize in-home comprehensive care for California’s medically complex children and allow them to live at home with their families. Currently, over 1,000 families are unable to take their children home from the hospital due to a lack of available private duty nurses. Now, with a commitment to fund private duty nursing, we can help bring these children out of the hospital and ensure they receive the long-term, comprehensive and cost-effective care they need from home.

Investments in the MCO provider tax will maintain funding for Medi-Cal providers. As stipulated in the budget agreement, a $62 million dollar investment in PDN will be fully funded by January 1, 2026.  This investment will generate a savings of at least $175 million to the state.

A longtime champion and advocate for some of California’s most medically vulnerable patients is Senator Caroline Menjivar (D-San Fernando Valley). Senator Menjivar has worked closely with CAHSAH and its PDN provider members to create a funding pathway for PDN in the home. CAHSAH is very appreciative of Senator Menjivar for her leadership on this critical issue.  Due to her steadfast commitment to this important issue, California’s medically complex and vulnerable patient population will now be able to be home with their families while they receive the critical home care they need and deserve.