Transcript Slide 1

Kansas Hospital Association
Legislative Update
July 29, 2008
Kansas Hospital Association
Medicare Legislation – HR 6331
• Reimbursement for CAH Lab Payments
– Beginning 1/1/09 CAHs receive cost-based
reimbursement for clinical lab services
• Physician Payment Fix
– Prevents a reduction and freezes 2008 fee
schedule payment rates at current levels
• Medicare Rural Hospital “FLEX” Program
– Extends FLEX program through Sept 30, 2010.
• Ambulance Services
– For July 1, 2008 through 2009, reinstates add-on
payment for ground ambulance services; 3% for
rural and 2% for urban.
Kansas Hospital Association
HPSA/MUA Proposed Rule
• Proposed rule in Feb. 28, 2008 Federal
Register
• Combines HPSA/MUP formula
• Utilized “2 tier formula”
– Based upon population to provider ratio of 3,000:1
• Several factors incorporated
– Barrier Free Population
– Definition of Provider
– High Need Indicator
– 2nd Tier excludes providers under certain
programs
• July 23, 2008 Federal Register withdraws
proposed rule
• New proposed rule to be developed
RHC Proposed Rule
Kansas Hospital Association
• Proposed changes include:
– Location Requirements:
• Be located in “non-urbanized” area
• Be located in a shortage area (HPSA; MUA; Governor’s
designated shortage areas)
• Provides exceptions to the location requirements
– Staffing Requirements:
• Eliminates the restrictions on the RHC contracting with nonphysician providers
– Payment Requirements:
• Revises pymt methodology to be consistent with statutory
requirements that set Medicare pymt at 80% of reasonable
cost
– Health, Safety, and Quality:
• Requires RHCs to establish a QAPI program
Kansas Hospital Association
CAH Relocation Guidelines
CMS’ Formal Guidance
• 75% Rule
– Same Service
• Services available under similar terms/times
– Same Population
• Zip Code Analysis; hospitals may use different methodology
– Same Employees
• Medical staff, direct employees and FT contract staff count
• J-1 visa; NHSC employees may be excluded
• High turnover facilities may provide additional documentation
•
Necessary Provider Designation – must meet same criteria
•
CMS now provides preliminary determinations based on CAH letters of
attestations and projections
•
Final approval only will be granted once the hospital has relocated and evidence
confirming compliance is provided
•
Contact KHA if considering Relocation; Large Renovation
Legislative Outlook - 2009
Kansas Hospital Association
• Health Reform (Part II?)
– Tobacco tax increase
– Statewide smoking ban
– Premium Assistance or SCHIP
• “Medicaid Transformation”
– Identified by KHPA
– Subcommittee to discuss possibilities
• Workforce Related Issues
– Wichita Center for Graduate Medical Education
– Nursing/Allied Health Shortages
Kansas Hospital Association
What Can You Do?
• Meet with your Legislator
– Invite to hospital
– Need help, let KHA know
• Find the connections
– Trustees
– Staff
– Other community members