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14. SUBSEQUENT EVENTS
12 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
14. SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS (unaudited)

 

In May 2013, CMS approved the managed care portion of the 2013 QAF for the period from July 1, 2011 through June 30, 2012. On June 26, 2013, CMS approved the managed care portion of the 2013 QAF for the period from July 1, 2012 through June 30, 2013.

 

Based on the most recent modeling prepared by the California Hospital Association, the Company anticipates making payments for provider fees and other expenses relating to the 2013 QAF of approximately $105.8 million and receiving approximately $235.5 million in revenues from the State ($79.4 million from the fee-for-service portion and $156.1 million from the managed care portion).

 

In June 2013, the Company received $72.1 million in managed care QAF payments for the period from July 1, 2011 through June 30, 2012 (Note 11). The Company anticipates receiving approximately $60.0 million in revenues for the period from July 1, 2012 through June 30, 2013.

 

The Company cannot provide any assurances or estimates in connection with CMS’s final managed care approval of the 2013 QAF (for the period from July 1, 2013 to December 31, 2013) or a possible continuation of the QAF program beyond December 31, 2013.

 

In June 2013, the Company paid down $25 million on its revolving line of credit, resulting in an outstanding balance of $10 million.