Amends Article 9 of the state budget and various provisions relative to hospital licensing fees, would redefine base year for purposes of calculating disproportionate share payments for fiscal years.
Significantly, S2751 also revises the 'base year' used to calculate disproportionate share payments (DSH) for hospitals. These payments are essential for hospitals that serve a high number of uninsured or Medicaid patients. By redefining the base year for calculating these payments, the bill seeks to ensure that the compensation provided to these hospitals more accurately reflects current financial challenges and patient care demands. The bill creates a mechanism for annual adjustments to be made according to changes such as uncompensated care and overall patient occupancy rates.
Bill S2751 introduces amendments to the Rhode Island General Laws concerning the licensing and regulation of healthcare facilities, particularly hospitals. The bill specifies changes to hospital licensing fees, which are based on the net patient-services revenue of each hospital. It establishes a tiered fee structure that varies according to the financial status and usage of services of the hospitals within the state. This tiered approach aims to provide a fairer system for licensing fees collected from hospitals, specifically targeting the varying needs of different types of facilities.
Notably, the bill faces some contention, particularly regarding concerns over the implications of the tiered fee structure. Some stakeholders argue that smaller facilities or those with fewer resources may struggle under new payment obligations, particularly if they fall into higher fee tiers. Additionally, the amendments concerning disproportionate share payments may also lead to debates over fairness in distribution and whether hospitals that serve a disproportionate number of low-income patients are adequately compensated. There are also concerns about potential federal compliance issues relating to the adjustments made to licensing fees and DSH payments, given the complex regulations surrounding Medicaid funding.