11. HOSPITAL QUALITY ASSURANCE FEES (QAF)	6 Months Ended
Sep. 30, 2013
Hospital Quality Assurance Fees Qaf
NOTE 11 - HOSPITAL QUALITY ASSURANCE FEES ("QAF")	In October 2009, the Governor of California signed legislation supported by the hospital industry to impose a provider fee on general acute care hospitals that, combined with federal matching funds, would be used to provide supplemental Medicaid payments to hospitals. The state submitted the plan to the Centers for Medicare and Medicaid Services (“CMS”) for a required review and approval process, and certain changes in the plan were required by CMS. Legislation amending the fee program to reflect the required changes was passed by the legislature and signed by the Governor on September 8, 2010. Among other changes, the legislation leaves distribution of “pass-through” payments received by Medicaid managed care plans that will be paid to hospitals under the program to the discretion of the plans. The hospital quality assurance fee (“QAF”) program created by this legislation initially provided payments for up to 21 months retroactive to April 2009 and expiring on December 31, 2010 (“2010 QAF”). In February 2011, CMS gave final approval for the 2010 QAF. During fiscal year 2011, the Company recognized $87.2 million in revenue and recorded expenses of $47.8 million relating to the 2010 QAF. In December 2011, CMS gave final approval for the extension of the QAF for the nine month period from January 1 through June 30, 2011 (“2011 QAF”). Accordingly, for the year ended March 31, 2012 the Company recognized $31.9 million in revenue and recorded expenses of $15.9 million relating to the 2011 QAF. In June 2012, CMS conditionally approved the extension of the QAF for the thirty month period from July 1, 2011 through December 31, 2013 (“2013 QAF”). In June 2012, the California State Legislature amended the hospital fee statute to recognize separate CMS approval of the fee-for-service portion and managed care portion of the 2013 QAF, which was further clarified in legislation approved by the governor of California in September 2012. As a result, during the year ended March 31, 2013, the Company recognized revenue of $54.2 million and expenses of $52.5 million relating to the 2013 QAF for the periods from July 1, 2011 through March 31, 2013. 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. As a result, during the three months ended June 30, 2013, the Company recognized revenue of $142.2 million and expenses of $33.5 million relating to the 2013 QAF for the periods from July 1, 2011 through June 30, 2013. During the three months ended September 30, 2013, the Company recognized revenue of $7.8 million and expenses of $8.0 million relating to the 2013 QAF for the period from July 1, 2013 through September 30, 2013. Through September 30, 2013, the Company has recorded $204.1 million in revenues and incurred $94.0 million in provider fees and other expenses relating to the 2013 QAF. For the remaining term of the 2013 QAF, the Company anticipates recording approximately $39.2 million in QAF revenues ($31.2 million for the managed care portion and $8.0 million for the fee-for-service portion) and incurring approximately $13.9 million in QAF related expenses. The Company cannot provide any assurances in connection with CMS’s final managed care approval of the 2013 QAF for the period from July 1, 2013 to December 31, 2013. In October 2013, the Governor of California signed legislation that would continue the QAF program for the period from January 1, 2014 through December 31, 2016. The program is subject to CMS review and approval.

11. HOSPITAL QUALITY ASSURANCE FEES (QAF)

6 Months Ended

Sep. 30, 2013

NOTE 11 - HOSPITAL QUALITY ASSURANCE FEES ("QAF")

In October 2009, the Governor of California signed legislation supported by the hospital industry to impose a provider fee on general acute care hospitals that, combined with federal matching funds, would be used to provide supplemental Medicaid payments to hospitals. The state submitted the plan to the Centers for Medicare and Medicaid Services (“CMS”) for a required review and approval process, and certain changes in the plan were required by CMS. Legislation amending the fee program to reflect the required changes was passed by the legislature and signed by the Governor on September 8, 2010. Among other changes, the legislation leaves distribution of “pass-through” payments received by Medicaid managed care plans that will be paid to hospitals under the program to the discretion of the plans. The hospital quality assurance fee (“QAF”) program created by this legislation initially provided payments for up to 21 months retroactive to April 2009 and expiring on December 31, 2010 (“2010 QAF”). In February 2011, CMS gave final approval for the 2010 QAF. During fiscal year 2011, the Company recognized $87.2 million in revenue and recorded expenses of $47.8 million relating to the 2010 QAF.

In December 2011, CMS gave final approval for the extension of the QAF for the nine month period from January 1 through June 30, 2011 (“2011 QAF”). Accordingly, for the year ended March 31, 2012 the Company recognized $31.9 million in revenue and recorded expenses of $15.9 million relating to the 2011 QAF.

In June 2012, CMS conditionally approved the extension of the QAF for the thirty month period from July 1, 2011 through December 31, 2013 (“2013 QAF”). In June 2012, the California State Legislature amended the hospital fee statute to recognize separate CMS approval of the fee-for-service portion and managed care portion of the 2013 QAF, which was further clarified in legislation approved by the governor of California in September 2012. As a result, during the year ended March 31, 2013, the Company recognized revenue of $54.2 million and expenses of $52.5 million relating to the 2013 QAF for the periods from July 1, 2011 through March 31, 2013.

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. As a result, during the three months ended June 30, 2013, the Company recognized revenue of $142.2 million and expenses of $33.5 million relating to the 2013 QAF for the periods from July 1, 2011 through June 30, 2013. During the three months ended September 30, 2013, the Company recognized revenue of $7.8 million and expenses of $8.0 million relating to the 2013 QAF for the period from July 1, 2013 through September 30, 2013.

Through September 30, 2013, the Company has recorded $204.1 million in revenues and incurred $94.0 million in provider fees and other expenses relating to the 2013 QAF. For the remaining term of the 2013 QAF, the Company anticipates recording approximately $39.2 million in QAF revenues ($31.2 million for the managed care portion and $8.0 million for the fee-for-service portion) and incurring approximately $13.9 million in QAF related expenses.

The Company cannot provide any assurances in connection with CMS’s final managed care approval of the 2013 QAF for the period from July 1, 2013 to December 31, 2013.

In October 2013, the Governor of California signed legislation that would continue the QAF program for the period from January 1, 2014 through December 31, 2016. The program is subject to CMS review and approval.