HI SB397

Extends the Hospital Sustainability Program by two years, changing the repeal date from June 30, 2017 to June 30, 2019, with certain provisions repealing on December 31, 2019.

Updates the "net patient service revenue" definition to use Medicare cost report data from three years prior to the fiscal year being calculated, replacing the fixed fiscal year 2013-2014 baseline.

Modifies the "private hospital" definition to include hospitals that became private hospitals in calendar years 2017 or 2018 (previously 2016), maintaining alignment with the Medicaid Section 1115 demonstration waiver.

Extends the use of hospital sustainability fee revenues and federal matching funds to enhance capitated rates paid to Medicaid managed care health plans through fiscal years 2017-2018 and 2018-2019.

Appropriates funds from the Hospital Sustainability Program Special Fund for fiscal years 2017-2018 and 2018-2019 to support increased Medicaid reimbursements to private hospitals and ensure access to care for Medicaid beneficiaries.