2018 Special Session I

Budget Amendments - HB5002 (Senate Committee Approved)

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Supplemental Payments Chesapeake Regional Hospital

Item 303 #1s

Item 303 #1s

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 outpatient payment for Chesapeake Regional Hospital based on the difference between reimbursement with rates using an adjustment factor of 100 percent minus current authorized reimbursement subject to the 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 inpatient and outpatient rates using an adjustment factor of 100 percent. 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 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 federal funds to make supplemental Medicaid payments to Chesapeake Regional Medical Hospital. This hospital is affiliated with a local government, which allows the hospital to make an intergovernmental transfer to the Department of Medical Assistance Services to be used as the state share for the supplemental Medicaid payments to the hospital and therefore have no impact on the general fund.)