LA HB1185

Creates the "Preservation Act For Other Rural Hospitals" to establish Medicaid reimbursement rates for small rural hospitals with 60 or fewer beds located outside metropolitan statistical areas in municipalities under 23,000 population

Requires Louisiana Department of Health to file a state plan amendment with CMS by September 1, 2026, setting reimbursement at 110% of reasonable costs for inpatient and outpatient services (or minimum 100% if CMS requires reduction)

Allows qualifying hospitals to certify as contributing public agencies for federal Medicaid matching funds and directs LDH to maximize intergovernmental transfers for these facilities

Mandates payment of 75% of interim outpatient cost report settlements and 100% of final settlements within 14 days of receipt, with new payment methodology effective July 1, 2026

Requires separate annual legislative appropriation for other rural hospital funding, prohibiting use of existing rural hospital reimbursement pools or programs