LA HCR2

Establishes a hospital stabilization formula for FY 2025-2026 that authorizes the Louisiana Department of Health to levy quarterly assessments on hospitals upon CMS approval of a directed payment arrangement for inpatient and outpatient services.

Sets assessment rates based on hospital type: 1.38% for long-term acute care, psychiatric, and rehabilitation hospitals; 4.99% for Hospital Service Districts; and 6.49% (inpatient) / 6.74% (outpatient) for other acute care hospitals on net patient revenue up to $125 million, with 2.36% on revenue exceeding that threshold.

Exempts rural hospitals (under the Rural Hospital Preservation Act), non-rural small urban private acute hospitals with 40 beds or less, and freestanding psychiatric Medicaid disproportionate share hospitals from the assessment.

Requires LDH to implement directed payment arrangements for both acute and post-acute care hospitals, maintain reimbursement rates no less than those in effect as of January 1, 2025, and publish quarterly reports on Medicaid claims and payments by hospital.

Mandates LDH submit necessary state plan amendments to CMS within 120 days of adoption and requires Joint Legislative Committee on the Budget approval before levying any assessment or implementing new payment arrangements if CMS does not approve the original proposal.