Eliminate supplemental payment authority for certain private nonprofit teaching hospitals
Biennium
2018-2020
Budget Round
Initial Bill
Half Sheet Number
303 #14s
Description
This amendment adds a sunset provision on language contained in the introduced budget authorizing the Department of Medical Assistance Services to implement supplemental Medicaid payments to teaching hospitals affiliated with an accredited medical school in Planning District 23 (Eastern Virginia Medical School) and Planning District 5 (Virginia Tech Carilion School of Medicine). A companion amendment implements a new statewide hospital provider payment rate assessment on private acute hospitals to increase Medicaid rates for inpatient and outpatient services. The statewide payment rate assessment will be matched with federal Medicaid dollars available for private hospital reimbursements to increase rates, benefiting these two teaching hospitals. However, federal Medicaid matching funds for private acute care hospitals is capped and it is likely that the implementation of statewide rate enhancements will utilize a majority of available federal dollars. Consequently, it is necessary to eliminate authority for separate supplemental payments for these two hospitals would upon the effective date of the statewide hospital provider payment rate assessment on private acute care hospitals.