Eliminate Backfill for Loss of Disproportionate Share Hospitals Payments

Item 316 #1s

Explanation

(This amendment reduces $907,820 the first year and $1,270,948 the second year from the general fund and restores a like amount of special fund appropriation in each year to reflect the continuation of Disproportionate Share Hospital (DSH) payments to two behavioral health facilities (Piedmont Geriatric Hospital and Catawba Hospital) operated by the Department of Behavioral Health and Developmental Services. DSH payments are made to qualifying hospitals that serve a large number of Medicaid and uninsured individuals. The Patient Protection and Affordable Care Act (ACA, P. L. 111-148 as amended) reduces DSH funding to all states beginning in federal FY 2018 (cuts were originally supposed to begin in FY 2014 but have been delayed). The Bipartisan Budget Act of 2019 (P.L. 115-123) that was recently signed into law February 9, 2018 further delays the DSH reductions until federal fiscal year 2020, resulting in this amendment to eliminate the general fund that was provided in the introduced budget to offset the DSH payment reductions to Piedmont Geriatric and Catawba hospitals).