AR HB1016

Amends Arkansas Code Title 20, Chapter 77 to add section 20-77-132 establishing diagnosis-related group methodology for hospital reimbursement under Arkansas Medicaid Program.

Defines "diagnosis-related group methodology" to include classification systems based on ICD-10-CM, specifically the all-patient refined diagnosis-related groups system and the enhanced ambulatory procedure grouping system.

Directs the Department of Human Services to convert hospital reimbursement systems to diagnosis-related group methodology to improve classification of patient populations and assessment of mortality risks and illness severity.

Requires the Department of Human Services to promulgate rules addressing supplemental payments to hospitals, transition funding from per diem reimbursement, and potential exemptions for certain hospital provider types.

Mandates the Department of Human Services, in coordination with the Arkansas Hospital Association, to develop and submit a conversion plan to the Legislative Council by January 1, 2018, including estimates of the conversion's impact on state and federal hospital funding and critical-access hospitals.