2018 Special Session I

Budget Amendments - HB5002 (Committee Approved)

View Budget Item
View Budget Item amendments

Medicaid Supplemental Payment for Chesapeake Regional Medical Center

Item 303 #5h

Item 303 #5h

First Year - FY2019 Second Year - FY2020
Health and Human Resources
Department of Medical Assistance Services FY2019 $3,018,676 FY2020 $3,109,236 NGF

Page 257, line 34, strike "$10,983,034,643" and insert "$10,986,053,319".
Page 257, line 34, strike "$12,657,131,076" and insert "$12,660,240,312".

Page 273, after line 36, insert:

"7. The department shall amend the State plan for Medical Assistance to implement a supplemental inpatient and outpatient payment for Chesapeake Regional Hospital based on the difference between reimbursement with rates using an adjustment factor of 100% minus current authorized reimbursement subject to the inpatient and outpatient Upper Payment Limits for non-state government owned hospitals.  The department shall include in its contracts with managed care organizations a minimum fee schedule for Chesapeake Regional Hospital consistent with rates using an adjustment factor of 100%.  The department shall adjust capitation payments to Medicaid managed care organizations to fund this minimum fee schedule.  Both the contract changes and capitation rate adjustments shall be compliant with 42 C.F.R. 438.6(c)(1)(iii) and subject to CMS approval.  Prior to submitting the State Plan Amendment or making the managed care contract changes, Chesapeake Regional Hospital shall enter into an agreement with the department to transfer the non-federal share for these payments.  The department shall have the authority to implement these reimbursement changes consistent with the effective date(s) approved by the Centers for Medicare and Medicaid (CMS).  No payments shall be made without CMS approval."


(This amendment provides $3.0 million the first year and $3.1 million the second year from nongeneral Medicaid funds to increase payments to Chesapeake Regional Medical Hospital, a non-state government owned hospital. Language allows the Department of Medical Assistance Services to make a supplemental payment for allowable costs subject to federal Upper Payment Limits, but requires the hospital to provide the funding to match the federal reimbursement for the supplemental payment.)