HB 5201 Summary: Medicaid Hospital Reimbursement

• Repeals the Community Hospital Education Act (s. 381.0403) and establishes a diagnosis-related group (DRG) prospective payment system for Medicaid inpatient hospital reimbursement effective July 1, 2013

• Requires local governmental entities to submit letters of agreement for intergovernmental transfers by October 15 annually for agency consideration in reimbursement rate calculations

• Establishes the Statewide Medicaid Graduate Medical Education program providing quarterly payments to hospitals for graduate medical education costs based on a formula weighing full-time equivalent residents (50%) and Medicaid education payments (50%)

• Modifies rural hospital designation to deem hospitals licensed as rural during 2010-2011 or 2011-2012 fiscal years as continuing rural hospitals through June 30, 2015 if maintaining 100 or fewer licensed beds and emergency room

• Changes error correction deadlines for inpatient and outpatient reimbursement rates to November 7 for discovery and November 15 for correction, with errors after November 7 reconciled in subsequent rate periods