California Hospital Association v. Office of Health Care Affordability, et al.

Date Filed: October 15, 2025
Status: Pending
District Court: Superior Court of the State of California - County of San Francisco – CPF25519370
Appellate Court: ---
Nature of Suit: Challenge to Regulatory Mandate
Defendant Type: State
Plaintiff Type: Private

On October 15, 2025, the California Hospital Association (CHA) filed suit against the California Office of Health Care Affordability (OHCA) (and affiliated defendants) over claims that OHCA’s cost targets are arbitrary, irresponsible and single out hospitals, and will severely disrupt hospital services, starving hospitals of needed resources.  Starting January 1, 2026, OHCA will begin to enforce cost targets, limiting California hospitals so that total healthcare expenditures do not annually increase by more than 3.5% for most hospitals, and a limit of 1.8% for seven high-cost hospitals. By 2029, these targets drop to 3% and 1.6%, respectively.

Court Documents:

9/10/2026: Order Overruling Demurrer to Second Amended Verified Petition for Writ of Mandate
8/31/2026: Respondents’ Reply in Support of Demurrer to Second Amended Verified Petition for Writ of Mandate
8/10/2026: Petitioner’s Opposition to Respondents’ Demurrer to Second Amended Petition for Writ of Mandate
7/6/2026: Memorandum of Points and Authorities in Support of Demurrer to Second Amended Verified Petition for Writ of Mandate
6/1/2026: Second Amended Verified Petition for Writ of Mandate; Second Amended Complaint for Declaratory Relief
4/2/2026: Amended Verified Petition for Writ of Mandate; First Amended Complaint for Declaratory Relief
2/17/2026: Order Sustaining Respondents’ Demurrer to Petition for Writ of Mandate
2/5/2026: Respondents’ Reply in Support of Demurrer to Petition for Writ of Mandate
1/15/2026: Petitioner’s Objections to Respondents’ Request for Judicial Notice in Support of Demurrer to Petition for Writ of Mandate
1/15/2026: Petitioner’s Opposition to Respondents’ Demurrer
12/15/2025: Declaration of Sophia Tonnu in Support of Respondents’ Demurrer Filed December 15, 2025
12/15/2025: Respondents’ Request for Judicial Notice in Support of Demurrer to Petition for Writ of Mandate
12/15/2025: Respondents’ Memorandum of Points and Authorities in Support of Demurrer to Petition for Writ of Mandate
12/15/2025: Respondents’ Notice of Motion and Motion
10/15/2025: CHA Complaint for Declaratory Relief Against OHCA

Case Watch Related Articles:

9/24/2026: San Francisco Court Allows CHA’s Challenge to OHCA’s Spending Targets to Proceed
8/21/2026: California Hospital Association Files Opposition to OHCA Demurrer
8/11/2026: California Hospital Association Makes New Claims in its Case Against OCHA Spending Targets
2/23/2026: Court Rules in Favor of OHCA’s Demurrer Against CHA
10/19/2025: California Hospital Association Files Suit Against OHCA Spending Targets

Key Issues: Cost Containment

Associated Legislation:

Cal. Health & Safety Code §§ 127501 through 127501.12: California Health Care Quality and Affordability Act – Office of Health Care Affordability – California
Introduced:    Status: Enacted
Establishing within the Department of Health Care Access and Information, the Office of Health Care Affordability. The office shall be responsible for analyzing the health care market for cost trends and drivers of spending, developing data-informed […]
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