2016 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Greason
Supplemental Medicaid Physician Payments for Children's National Health System

Item 306 #9h

Item 306 #9h

First Year - FY2017 Second Year - FY2018
Health and Human Resources
Department of Medical Assistance Services FY2017 $1,419,065 FY2018 $1,419,065 GF
FY2017 $1,419,065 FY2018 $1,419,065 NGF

Page 250, line 34, strike "$9,740,405,698" and insert "$9,743,243,828".
Page 250, line 34, strike "$11,552,255,000" and insert "$11,555,093,130".

Page 274, after line 33, insert:

"SSSS. The Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to increase the supplemental physician payments for physicians employed at a freestanding children's hospital serving children in Planning District 8 with more than 50 percent Medicaid inpatient utilization in fiscal year 2014 to the maximum allowed by the Centers for Medicare and Medicaid Services. The total supplemental Medicaid payment shall be based on the Upper Payment Limit approved by the Centers for Medicare and Medicaid Services and all other Virginia Medicaid payments. The department shall have the authority to implement these reimbursement changes effective July 1, 2016, and prior to the completion of any regulatory process undertaken in order to effect such change."


(This amendment provides funding to Children's National Health System for supplemental physician payments to ensure continued access by Medicaid-eligible children residing in Planning District 8 to Children's 313 Neo-natal Intensive Care Unit and inpatient beds. The supplemental payments will help Children's address critical workforce development needs as the region's premier teaching hospital for pediatrics and would help bridge the gap between the pediatric Medicaid rate paid by Virginia and Medicare rates. The funding requested represents less than 15 percent of Children's $11.3 million in physician costs.)