House Bill 332 Summary

• Rural hospitals with 50 or fewer licensed beds may opt out of the Ambulatory Payment Classification (APC) reimbursement methodology for outpatient hospital services and instead be reimbursed at 101% of the Medicare rate for those services.

• Outpatient hospital services provided by rural hospitals with 50 or fewer licensed beds are exempt from the 5% provider reimbursement rate reduction otherwise applicable to certain Medicaid services.

• Rural hospitals choosing this alternative reimbursement option remain under cost-based reimbursement for a two-year period.

• The section repealer date is extended from June 30, 2018 to July 1, 2022.

• The bill takes effect June 30, 2018.