FL S7058

Implements a diagnosis-related group (DRG) prospective payment system for Medicaid inpatient hospital services, replacing cost-based reimbursement, with a single uniform base rate for all hospitals unless exempted under s. 409.908(1).

Establishes the Statewide Medicaid Residency Program to fund graduate medical education at participating hospitals, distributing quarterly payments based on a formula weighting full-time equivalent residents (90%) and Medicaid payments (10%), with a $50,000 per FTE resident cap.

Implements allowable cost-based methodology for hospital outpatient services with annual rate calculations effective July 1, prevents rate adjustments after October 31 except for insufficient intergovernmental transfers, and limits adjustments to within 5 years of audited rate notification.

Extends rural hospital designation through June 30, 2015 for hospitals licensed as rural during 2010-2011 or 2011-2012 fiscal years if they maintain 100 or fewer licensed beds and an emergency room.

Limits specialty hospital disproportionate share payments to those under contract with the Department of Health providing tuberculosis services, and updates disproportionate share payment calculations to use 2005, 2006, and 2007 audited data instead of 2004-2006 data.