2000 Session

Budget Amendments - HB30 (Committee Approved)

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Hospital Payment Adjustment

Item 319 #34h

Item 319 #34h

First Year - FY2001 Second Year - FY2002
Health And Human Resources
Medical Assistance Services, Department of FY2001 $7,000,000 FY2002 $0 GF
FY2001 $7,525,835 FY2002 $0 NGF

Page 244, line 45, strike "$2,849,830,824" and insert "$2,864,356,659".
Page 250, after line 8, insert:
"X.  Effective July 1, 2000, the Department of Medical Assistance Services shall pay a one-time, lump sum payment of $14,525,835 to eligible Virginia hospitals participating in the Medicaid program.  The payment shall be made in four equal quarterly amounts during fiscal year 2001.  The distribution of these funds shall generally be in proportion to the estimated adverse impact of the rebased Diagnosis Related Grouping rates, effective July 1, 1998, on each individual hospital for services provided between July 1, 1998, through December 31, 1999.  The Department of Medical Assistance Services shall consult with the Virginia Medicaid Hospital Payment Policy Advisory Council regarding the calculation and mechanics of the payment adjustment."

(This amendment provides funds to the Department for an adjustment in hospitals to reduce the impact of a new methodology that retroactively cuts payments. A companion amendment in Item 20 directs the Joint Legislative Audit and Review Commission to evaluate the Department's payment methodology used to reimburse hospitals for inpatient care.)