Cal. Welf. & Inst. Code § 14165.95
On or before February 1, 1984, the commission shall submit to the Legislature an evaluation of its inpatient hospital service procedure, including, but not limited to, the following:
(e) The effect of flat per diem rates on the variety of cases treated by contract hospitals.
The evaluation provided for by this section shall be accompanied by a recommendation for any relevant legislation deemed necessary by the commission.