Provides for a hospital stabilization formula (EN +$648,232,241 SD RV See Note)
The proposed assessment will apply differently based on the type of hospital, with rates calculated as a percentage of inpatient and outpatient revenues reported in Medicare cost reports. The aim is to create a reliable funding source while minimizing the financial burden on insured patients by reducing the cost shifting associated with care for uninsured residents. As a part of its enactment, it stipulates quarterly collection of assessments, thereby ensuring timely funding for hospitals.
HCR2, also known as the Hospital Stabilization Resolution, aims to implement a hospital stabilization formula to enhance the availability of inpatient and outpatient hospital services in Louisiana. The bill authorizes the Louisiana Department of Health (LDH) to levy an assessment on certain hospitals to fund reimbursement enhancements aimed at preserving hospital stability without relying on state general funds. The funding generated is anticipated to support the financial sustainability of the Medicaid hospital program in compliance with federal guidelines.
The sentiment surrounding HCR2 appears largely positive, as it is presented as a proactive measure to support hospitals in Louisiana, particularly those facing financial challenges. Proponents argue that it establishes an essential funding mechanism that balances state healthcare needs while providing high-quality services to residents. The overarching view from supporters is that maintaining hospital viability is critical for community health and economic stability.
Notable points of contention include concerns about the impact of the assessment on smaller hospitals and the administrative burden it may impose. While larger hospitals may handle the adjustments more comfortably, smaller and rural hospitals, when included in the assessment scheme, may feel additional pressure. Furthermore, there could be debate over the equity of how the assessments are applied and potential disparities in reimbursement rates, particularly for underserved areas, which the resolution aims to address.