Notwithstanding any other provision of law, the Governor shall designate a person in his office to act as a special negotiator to negotiate rates, terms, and conditions for contracts with hospitals for inpatient services to be rendered to Medi-Cal program beneficiaries. The negotiator may also, if he or she deems it expedient, call for bids, in lieu of negotiations. The special negotiator shall consider, when contracting, the total funds appropriated for inpatient hospital services.

The department and every other state agency concerned with health care or public social services shall provide such assistance as the negotiator may require. The department shall enter into contracts with hospitals and shall be bound by the rates, terms, and conditions negotiated by the negotiator. The negotiator shall have the powers of a head of a department pursuant to

Chapter 2 (commencing with

Section 11150) of Part of Division of Title of the Government Code, except, that he or she shall adopt only such rules and regulations pursuant to

Section of the Government Code as are necessary to carry out those duties specifically conferred upon the negotiator by Articles 2.6 (commencing with

Section 14081), 2.8 (commencing with

Section 14087.5), 2.91 (commencing with

Section 14089), and 2.92 (commencing with

Section 14090) of this chapter. The negotiator shall adopt such regulations as emergency regulations in accordance with the provisions of

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code. For the purposes of the Administrative Procedure Act, the adoption of the regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding the provisions of

Chapter 3.5 (commencing with

Section 11340) of Part of Division of Title of the Government Code, emergency regulations adopted in accordance with this

section shall not be subject to the review and approval of the Office of Administrative Law. These regulations shall become effective immediately upon filing with the Secretary of State. In addition to the powers specified in this section, the negotiator has the authority to negotiate contracts under

Article 2.8 (commencing with

Section 14087.5),

Article 2.91 (commencing with

Section 14089), and

Article 2.92 (commencing with

Section 14090) of this chapter. Also, the California Medical Assistance Commission shall have the authority to enter into contracts for the provision of acute inpatient hospital services for the care of County Medical Services Program beneficiaries pursuant to

Section of the Welfare and Institutions Code. Nothing in this

article or the Budget Act of prohibits the negotiator from adjusting rates paid to hospitals to reflect inflation, provided that such adjustments are determined during the negotiating process. The amendment of this

section made at the 1983–84 Regular Session of the Legislature does not constitute a change in, but is declaratory of, the existing law.