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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 401
BY SENATORS THOMPSON, LAFLEUR, NEVERS AND WALSWORTH AND
REPRESENTATIVES ELLINGTON, GUILLORY, HARRISON,
HAZEL, KATZ, LEBAS, MILLS AND GARY SMITH
AN ACT1
To enact R.S. 40:1300.144(A)(4), relative to rural hospitals; to provide for rural hospital2
reimbursement; to provide for the development of payment methods that optimize3
federal funds to reduce or eliminate small rural hospitals' reliance upon4
uncompensated care costs funding; to provide for rules and regulations; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 40:1300.144(A)(4) is hereby enacted to read as follows: 8
ยง1300.144. Medical assistance programs; rural hospital reimbursement9
A. The department shall adopt rules and regulations in accordance with the10
Administrative Procedure Act that provide the following:11
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(4)(a) Effective for services provided on or after July 1, 2010, or as soon13
thereafter as may be permitted by federal law, the department shall develop and14
implement, by emergency rule, a payment methodology which optimizes15
Medicaid inpatient and outpatient payments to rural hospitals. Payments shall16
be developed utilizing available Medicare upper payment limits for inpatient17
and outpatient services in accordance with state and federal law. Calculated18
payments shall be distributed to qualifying rural hospitals no less than19
quarterly, or as authorized by federal law.20
(b) After federal funds are optimized, the remaining appropriated funds21
for rural hospitals may be utilized to develop a state-only funded program to22
provide direct funds to qualifying rural hospitals to support access to services23
that would not be available otherwise. In the event the amount appropriated for24
such state-only funded program is insufficient in any state fiscal year to meet25
the total payments required by all rural hospitals to recover payment26
ACT No. 883 SB NO. 401 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
reductions, the payments to qualifying rural hospitals under this state-only1
funded program may be reduced proportionately.2
(c) The department shall review Medicaid and uninsured cost3
information, payment information, patient charges, and hospital financial4
statements to the extent required by state or federal law to determine the5
optimal combination of payments.6
(d) Rural hospitals that do not provide the minimum set of7
documentation required in Subparagraph (4)(c) of this Section to determine the8
optimal combination of payments shall not be eligible for additional payments.9
(e) The department is hereby authorized to publish and promulgate10
rules, in accordance with the Administrative Procedure Act, to implement the11
provisions of this Paragraph.12
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: