Governor Charles D. Baker's Budget Recommendation - House 1 Fiscal Year 2018

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Outside Section 19



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Hospital Assessment 1

SECTION 19.   Said chapter 29 is hereby amended by inserting, after section 2VVVV, the following section:-

Section 2WWWW. (a) There shall be a Non-Acute Care Hospital Reimbursement Trust Fund to be administered by the secretary of health and human services. There shall be credited to the fund: (1) All revenues generated from the assessment under subsection (b) of section 67 of chapter 118E ; (2) an amount equal to any federal financial participation revenues claimed and received by the commonwealth for eligible expenditures made from the fund; (3) any revenue from appropriations or other money authorized by the general court and specifically designated to be credited to the fund; and (4) interest earned on any money in the fund. Amounts credited to the fund shall be expended without further appropriation.
(b) Money in the fund shall be expended for Medicaid payments for (i) non-public hospitals licensed by the department of public health under section 51 of chapter 111 , but not defined as "acute care hospitals" under section 25B of said chapter 111 , or (ii) non-public hospitals licensed as "inpatient facilities" by the department of mental health under section 19 of chapter 19 and regulations promulgated thereunder, but not categorized as Class VII licensees under said regulations. The amounts of increased payments to such hospitals under this section shall be established by the executive office of health and human services in a manner consistent with the requirements and conditions of federal financial participation under 42 U.S.C. §1396b(w) and 42 C.F.R. §433.68, including the prohibitions against hold harmless features as defined under 42 U.S.C. §1396b(w)(4) and 42 C.F.R. §433.68(f) and shall be made only under federally-approved payment methods and consistent with federal funding requirements and all federal payment limits as determined by the secretary of health and human services; provided further, that the schedule of payment amounts to be established and distributed by the executive office of health and human services under this section shall be developed: (i) in a manner determined to promote the provider capacity, access and utilization management needs of the MassHealth program, as those needs are determined by the secretary of health and human services; and (ii) in consultation with at least one trade organization representing rehabilitation hospital providers, chronic hospital providers, and psychiatric hospital providers. In order to accommodate timing discrepancies between the receipt of revenue and related expenditures, the comptroller may certify for payment amounts not to exceed the most recent revenue estimates as certified by the secretary of health and human services to be transferred, credited or deposited under this section. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund and shall be available for expenditure in subsequent fiscal years.



Summary:
This section establishes a non-acute care hospital reimbursement trust fund to support the provider capacity, access and utilization management needs of the MassHealth program. The fund will be credited with amounts collected under the non-acute care hospital assessment.



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