2019 Session

Budget Amendments - HB1700 (Committee Approved)

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Increase Reimbursement for Critical Access Hospitals

Item 303 #8h

Item 303 #8h

First Year - FY2019 Second Year - FY2020
Health and Human Resources
Department of Medical Assistance Services FY2019 $0 FY2020 $1,612,235 GF
FY2019 $0 FY2020 $3,124,796 NGF

Page 315, line 7, strike "$14,974,837,166" and insert "$14,979,574,197".

Page 342, after line 27, insert:

"YYY. The Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to increase reimbursement for Critical Access Hospitals by using an adjustment factor of 100% for inpatient operating and capital rates and outpatient rates effective July 1, 2019.  The department shall have the authority to implement these changes effective July 1, 2019 and prior to completion of any regulatory action to effect such change."


(This amendment adds $1.6 million from the general fund and $3.1 million from nongeneral funds to increase reimbursement for inpatient, outpatient and capital rates for Critical Access Hospitals to 100 percent of allowable costs. A Critical Access Hospital is a designation given to eligible rural hospitals by the Centers for Medicare and Medicaid Services (CMS), so that reimbursement policies could be designed to reduce financial vulnerability of these hospitals and improve access to healthcare by keeping essential services in rural communities. There are currently seven Critical Access Hospitals operating in Virginia.)