2021 Special Session I

Budget Amendments - SB1100 (Committee Approved)

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Supplemental Payments to Lake Taylor Hospital

Item 313 #6s

Item 313 #6s

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 $0 FY2022 $5,200,000 NGF

Page 345, line 39, strike "$17,494,923,315" and insert "$17,500,123,315".

Page 364, after line 2, insert:

"9. The department shall amend the State plan for Medical Assistance to implement a supplemental inpatient payment for Lake Taylor Transitional Care Hospital based on the difference between Medicaid reimbursement and the inpatient Upper Payment Limit for non-state, government-owned hospitals. The department shall include in its contracts with managed care organizations a percentage increase for Lake Taylor Transitional Care Hospital consistent with the fee-for-service supplemental payment percentage increase. The department shall adjust capitation payments to Medicaid managed care organizations to fund this percentage increase. Both the contract changes and capitation rate adjustments shall be compliant with 42 C.F.R. 438.6(c)(1)(iii) and subject to Centers for Medicare and Medicaid Services approval. Prior to submitting the State Plan Amendment or making the managed care contract changes, Lake Taylor Transitional Care 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 Services (CMS). No payments shall be made without CMS approval."


(This amendment adds $5.2 million in nongeneral fund appropriation the second year and language to allow Lake Taylor Transitional Care Hospital, a non-state, government-owned hospital located in Norfolk, Virginia, to provide the Commonwealth's share of funding through an intergovernmental transfer process to procure supplemental payments from the Medicaid program.)