Senate Bill S7371B

                                BILL NUMBER:S7371

TITLE OF BILL:

An act
to amend the public health law, in relation to payments to rural
hospitals designated as critical access hospitals

PURPOSE:

To allow that on and after April 1, 2013, rural hospitals designated
as critical access hospitals are paid by Medicaid in the same manner
that Medicare pays critical access hospitals, which is on the basis
of reasonable costs.

SUMMARY OF PROVISIONS:

Amends Subdivision 2-a of section 2807 of the Public Health Law by
adding a new paragraph (j) that on and after April 1, 2013, a rural
hospital designated as a critical access hospital shall have Medicaid
payments for emergency services, and all outpatient services equal to
one hundred and one percent of the reasonable costs of such facility
in providing these services.

JUSTIFICATION:

              

Critical access hospitals serve medically underserved geographically
isolated communities. They provide limited stay special care, acute
care and swing bed services, as well as 24 hour emergency service
capability. The maintenance of critical access. hospitals is critical
for preserving access to basic health care services for rural New
Yorkers.

Cost based Medicaid reimbursement would help ensure the long range
financial viability of primary care hospitals. New York State
Medicaid reimbursement rates are presently capped at lower than
operational costs.
The problem is exacerbated for critical access hospitals because of
the need to spread substantial fixed costs over a small number of
visits and admissions. Medicare reimburses such hospitals (called
critical access hospitals under Medicare) on the basis of reasonable
costs. This line helped stabilize such hospitals and ensure that
isolated communities continue to have access to needed health care
services. Having Medicaid payments also equal reasonable costs will
further ensure the financial viability of such hospitals.

LEGISLATIVE HISTORY:

2007-2008: S.7232 Passed Senate/A.8783A Health Committee
2009-2010: S.4108A Health Committee/A.5347A Health Committee
2011:      S.5431A Passed Senate/A.5366B Passed Assembly;
           Veto Memo. 80

FISCAL IMPLICATIONS:


This legislation is expected to cost the state $1. 24 million and will
ensure the financial viability of its thirteen critical access
hospitals.

EFFECTIVE DATE:

This act shall take effect immediately.

                                BILL NUMBER:S7371A

TITLE OF BILL:

An act to amend the public health law, in relation to payments to
rural hospitals designated as critical access hospitals

PURPOSE:

To allow that on and after April 1, 2013, rural hospitals designated
as critical access hospitals are paid by Medicaid in the same manner
that Medicare pays critical access hospitals, which is on the basis of
reasonable costs.

SUMMARY OF PROVISIONS:

Amends Subdivision 2-a of section 2807 of the Public Health Law by
adding a new paragraph (j) that on and after April 1, 2013, subject to
funds being appropriated therefore, a rural hospital designated as a
critical access hospital shall have Medicaid payments for emergency
services, and all outpatient services equal to one hundred and one
percent of the reasonable costs of such facility in providing these
services.

JUSTIFICATION:

              

Critical access hospitals serve medically underserved geographically
isolated communities. They provide limited stay special care, acute
care and swing bed services, as well as 24 hour emergency service
capability. The maintenance of critical access hospitals is critical
for preserving access to basic health care services for rural New
Yorkers.

Cost based Medicaid reimbursement would help ensure the long range
financial viability of primary care hospitals. New York State Medicaid
reimbursement rates are presently capped at lower than operational
costs.  The problem is exacerbated for critical access hospitals
because of the need to spread substantial fixed costs over a small
number of visits and admissions. Medicare reimburses such hospitals
(called critical access hospitals under Medicare) on the basis of
reasonable costs. This line helped stabilize such hospitals and ensure
that isolated communities continue to have access to needed health
care services. Having Medicaid payments also equal reasonable costs
will further ensure the financial viability of such hospitals.

LEGISLATIVE HISTORY:

2007-2008: S.7232 PASSED SENATE/A.8783A Health committee
2009-2010: S.4108A HEALTH COMMITTEE/A.5347A Health Committee
2011:      S.5431A PASSED SENATE/A.5366B Passed Assembly;
           Veto Memo. 80

FISCAL IMPLICATIONS:


This legislation is expected to cost the state $1.24 million and will
ensure the financial viability of its thirteen critical access
hospitals.

EFFECTIVE DATE:

This act shall take effect immediately.