SB 920 Summary

• Modifies the Private Hospital Supplemental Fund allocation methodology to allocate funding to eligible private hospitals based on 2011-12 fiscal year payment levels, effective when diagnosis-related group reimbursement methodology is implemented.

• Adjusts quality assurance fee calculations and supplemental payment amounts to private hospitals for inpatient services across fiscal years 2011-12 through 2013-14, with reduced amounts for the 2013-14 fiscal year.

• Increases aggregate grants to nondesignated public hospitals to $18.6 million annually, except $9.3 million for 2013-14 fiscal year.

• Reduces Low Income Health Program MCE Out-of-Network Emergency Care Services Fund transfers by half for 2013-14 and authorizes direct supplemental payments to private hospitals as alternative to disbursing through LIHPs.

• Extends operative date of hospital payment and grant provisions to January 1, 2015, and changes federal approval deadline from September 1, 2013 to December 1, 2013.