2012 Session

Budget Amendments - HB30 (Committee Approved)

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Medicaid Funding for the State Teaching Hospitals

Item 307 #4h

Item 307 #4h

First Year - FY2013 Second Year - FY2014
Health And Human Resources
Medical Assistance Services, Department of FY2013 $8,743,133 FY2014 $0 GF
FY2013 $21,022,508 FY2014 $34,303,592 NGF

Page 225, line 49, strike "$7,438,749,436" and insert "$7,468,515,077".
Page 225, line 49, strike "$9,042,320,948" and insert "$9,076,624,540".
Page 226, line 15, strike "$64,089,697" and insert "$68,225,893".
Page 226, line 22, strike "$32,092,758" and insert "$36,699,695".
Page 226, after line 32, insert:
"4.  The Department Of Medical Assistance Service shall have the authority to increase Medicaid payments for Type One hospitals and physicians consistent with the appropriations to compensate for limits on disproportionate share hospital (DSH) payments to Type One hospitals that the department would otherwise make.  In particular, the department shall have the authority to amend the State Plan for Medical Assistance to increase physician supplemental payments for physician practice plans affiliated with Type One hospitals up to the average commercial rate as demonstrated by University of Virginia Health System and Virginia Commonwealth University Health System, to change reimbursement for Graduate Medical Education to cover costs for Type One hospitals, to case mix adjust the formula for indirect medical education reimbursement for HMO discharges for Type One hospitals and to increase the adjustment factor for Type One hospitals to 1.0.  The department shall have the authority to implement these changes prior to completion of any regulatory process undertaken in order to effect such change."

(This amendment restores Medicaid funding for the state teaching hospitals. The introduced budget eliminated hospital inflation and continued prior year reductions in indigent care funding that impacted the teaching hospitals more than intended. This amendment restores the general fund for the teaching hospitals in fiscal year 2013 to reflect the impact of only losing inflation and the prior indigent care reductions. In addition, the nongeneral fund appropriation is increased for the federal share of the total reductions because those funds will still be paid to the teaching hospitals regardless of the loss of general fund. Language is added to allow the agency the authority to compensate the teaching hospitals for limits on DSH payments using other payment mechanisms available through Medicaid funding for reimbursement of Medicaid and indigent care costs.)