2000 Session

Budget Amendments - HB29 (Member Request)

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Chief Patron: Hall
Co-Patron(s): Clement, Jackson
Hospital Rates-No Retrospective Reduction

Item 335 #3h

Item 335 #3h

First Year - FY1999 Second Year - FY2000
Health and Human Resources
Medical Assistance Services, Department of FY1999 $0 FY2000 $28,800,000 GF
FY1999 $0 FY2000 $30,700,000 NGF

Page 280, line 16, strike "$2,742,276,650" and insert "$2,801,776,650".
Page 291, after line 20 insert:
"MM.  During settlement of cost reports with hospitals for dates of service in fiscal year 1998, the Department of Medical Assistance Services shall apply the DRG system rates and weights in effect for that period with no retrospective reductions to such operating payment rates.  Hospital inpatient operating payment rates for dates of service in state fiscal years 1999 and 2000 shall be based on the October 1999 rate package proposed by the Department, except that the base rates shall be increased by 9.6 percent for Type I hospitals and by 11.8 percent for Type II hospitals.  Fiscal year 2000 DRG system rates will be adjusted for inflation, using the latest DRI-Virginia information available."

(This amendment adds language that requires the Department of Medical Assistance Services to update rate calculations for hospitals without imposing retrospective rate reductions. The proposed addition of state and federal Medicaid funds would offset the revenue loss to hospitals under the current reimbursement methodology.)