MN SF4462

Amends Minnesota Statutes section 256.969, subdivision 2b to modify hospital inpatient payment methodologies for discharges occurring on or after November 1, 2014.

Establishes different payment methods for hospital types: critical access hospitals use cost-based methodology, long-term hospitals use per diem rates, rehabilitation hospitals use specified methodology, and all other hospitals use diagnosis-related group (DRG) methodology.

Requires payment rates to be rebased every two years beginning July 1, 2017, reflecting changes in hospital costs between base years, with base years established using the most recent available Medicare cost reports.

Sets critical access hospital payment rates effective July 1, 2023, at 100 percent of base year costs inflated to the rate year using the hospital cost index, replacing the previous tiered payment system.

Requires the commissioner to calculate and report to the legislature by January 15 of each rebasing year the estimated change in average payment per hospital discharge and the differential in payment rates compared to individual hospital costs.