2001 Session

Budget Amendments - SB800 (Member Request)

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Chief Patron: Bolling
Hospital Reimbursement-COPN Plan

Item 319 #12s

Item 319 #12s

First Year - FY2001 Second Year - FY2002
Health And Human Resources
Medical Assistance Services, Department of FY2001 $0 FY2002 $12,000,000 GF
FY2001 $0 FY2002 $12,960,000 NGF

Page 307, line 50, strike "$3,069,053,201" and insert "$3,094,013,201".

(This amendment provides funding in the second year to increase Medicaid reimbursement to hospitals and eliminate the use of a payment adjustment (reductions) factor by the Department of Medical Assistance Services. A 2000 JLARC study of Medicaid's hospital reimbursement methodology found that this payment adjustment policy does not fully recognize improvements in the efficiency of hospital operations. This funding represents about one-half of the funding needed to fully eliminate this policy. This is a recommendation of the Joint Commission on Health Care as part of its plan to deregulate the Certificate of Public Need program, and is one of seven budget amendments which would provide funding to implement the first phase of the deregulation plan.)