2017 Session

Budget Amendments - HB1500 (Conference Report)

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Modify Peer Group Assignment for Danville, Pittsylvania Nursing Facilities

Item 306 #7c

Item 306 #7c

First Year - FY2017 Second Year - FY2018
Health and Human Resources
Department of Medical Assistance Services FY2017 $0 FY2018 $1,603,910 GF
FY2017 $0 FY2018 $1,603,910 NGF

Page 284, line 40, strike "$9,714,745,576" and insert "$9,717,953,396".

Page 299, after line 44, insert:

"8. Effective July 1, 2017 through June 30, 2020, the Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to pay nursing facilities located in the former Danville Metropolitan Statistical Area (MSA) the operating rates calculated for the Other MSA peer group.  For purposes of calculating rates under the rebasing effective July 1, 2017, the department shall use the peer groups based on the existing regulations. For future rebasings, the department shall permanently move these facilities to the Other MSA peer group.  The department shall have the authority to implement this reimbursement change effective July 1, 2017 and prior to completion of any regulatory process undertaken in order to effect such change."


(This amendment adds funding and language to correct the unintended consequence of changing the designation of the Danville and Pittsylvania County peer group for purposes of calculating Medicaid nursing home reimbursement for nursing facilities located in these localities from a Metropolitan Statistical Area to a Micropolitan Statistical Area. The Department of Medical Assistance Services made this change in 2013 when it implemented the Medicaid Price-Based Payment System for nursing facilities. However, the consequences of this change was not fully understood until the agency began analyzing nursing facility data in preparation of nursing facility rebasing.)