The California Department of Health Care Services (DHCS) announced two August 2026 deadlines for Skilled Nursing Facilities:

• August 3, 2026: Workforce Standards Program opt-in deadline for CY 2027
• August 15, 2026, with submissions accepted through December 31, 2026: Medi-Cal COVID-19 PHE Reporting Schedules for the 2023 period

Workforce Standards Program Opt-In | Due August 3, 2026

DHCS announced that the CY 2027 Skilled Nursing Facility Workforce Standards Program (WSP) opt-in period is open until August 3, 2026.

The WSP provides an enhanced Medi-Cal per diem rate, including a workforce rate adjustment, to SNFs that maintain a collective bargaining agreement, participate in a statewide multi-employer labor management committee (LMC), or meet basic wages and benefit standards established by DHCS. 

• Facilities that wish to receive the enhanced Medi-Cal per diem rate, including the workforce rate adjustment, must opt in for CY 2027
• Prior acceptance for CY 2024, CY 2025, or CY 2026 does not carry forward. Facilities must opt in for CY 2027 to receive the enhanced Medi-Cal per diem rate.  
• Facilities that do not opt-into the WSP for an applicable rate year will default to the basic per diem rate, without the workforce rate adjustment, for the duration of the rate year.
• The opt-in form and supporting documents are available on the DHCS WSP webpage.

COVID-19 PHE Reporting Schedules | Due August 15, 2026

DHCS has extended the Medi-Cal COVID-19 PHE reporting requirement to include calendar year 2023. Facilities that received the 10% Medi-Cal COVID-19 rate add-on must submit reporting schedules for PHE-related expenses and revenues from January 1 through December 31, 2023. The prior cycle covered March 2020 through December 2022.

Key requirements:

• At least 85% of the rate add-on must be spent on qualifying labor costs (wage increases, retention bonuses, shift incentives, non-management overtime). The remaining balance may cover other qualifying COVID costs such as PPE, testing, and staff training.
• Federal PHE-related funds received during 2023 (HRSA, PRF, or other grants) must be reconciled against the COVID expense pool to avoid double-counting.
• Facilities with a Change of Ownership must disclose CHOW details on Schedule 2; the original recipient of the increased payments is responsible for filing.

Timeline:

• DHCS has set an initial target date of August 15, 2026 for submission, but will continue to accept submissions after that date. Schedules not received by December 31, 2026 could trigger remedial actions, including recoupment under WIC section 14126.032(c).

The reporting schedules, instructions, and FAQ are available on the DHCS Medi-Cal COVID-19 PHE Audits webpage.

We’ve assisted thousands of clients with the Workforce Standards Opt-In and PHE reporting requirements in prior years and are available to answer questions or help with preparation. If you’d like to talk through your situation, don’t hesitate to reach out.