2000 Session

Budget Amendments - SB30 (Committee Approved)

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Mitigate Retroactive Hospital Rate Cuts

Item 319 #7s

Item 319 #7s

First Year - FY2001 Second Year - FY2002
Health And Human Resources
Medical Assistance Services, Department of FY2001 $5,300,000 FY2002 $0 GF
FY2001 $5,800,000 FY2002 $0 NGF

Page 244, line 45, strike "$2,849,830,824" and insert "$2,860,930,824".
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 $11,100,000 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 re-based 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 Policy Advisory Council regarding the calculation and mechanics of the payment adjustment."

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