LEGAL NOTICE

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF MEDICAL ASSISTANCE SERVICES

NOTICE OF INTENT TO AMEND

(pursuant to §1902(a)(13) of the Act (U.S.C. 1396a(a)(13))

THE VIRGINIA STATE PLAN FOR MEDICAL ASSISTANCE

The Virginia Department of Medical Assistance Services (DMAS) hereby affords the public notice of its intention to amend the Virginia State Plan for Medical Assistance to provide for changes to the Methods and Standards for Establishing Payment Rates—Inpatient Hospital Services, the Methods and Standards for Establishing Payment Rates—Other Types of Care, and the Methods and Standards for Establishing Payment Rates—Long Term Care. The changes contained in this public notice are occurring in response to language in the 2007 Appropriation Act.  The Appropriation Act directs DMAS to (i) set the adjustment factor for inpatient psychiatric services performed by acute care Type 2 hospitals to 0.8400 with an equivalent change to the Type 1 hospital adjustment factor and (ii) permanently remove freestanding psychiatric hospitals from hospital rebasing ($3.2 million, Fiscal Year 08).  The Appropriation Act directs DMAS to eliminate the rural wage index category used to adjust the labor portion of the statewide operating rates for hospitals ($1.2 million, Fiscal Year 08).  The Appropriation Act directs DMAS to provide a 10 percent increase to pediatric physician services and a 5 percent increase to all other physician services excluding obstetrics/ gynecology (OB/GYN) and to create separate categories for preventive and non-preventive pediatric services ($27.1 million, Fiscal Year 08).  The Appropriation Act directs DMAS to provide for up to 750 square feet per bed in determining the construction cost limit for children’s ICF/MR facilities of 50 beds or more ($311,000, Fiscal Year 08).  The above changes would be effective July 1, 2007. This change is being made pursuant to the Department’s authority under Title XIX of the Social Security Act. 

This notice is intended to satisfy the requirements of 42 C.F.R. 
§ 447.205 and of § 1902(a)(13) of the Social Security Act, 42 U.S.C. § 1396a(a)(13).  A copy of this notice is available for public review from William Lessard, Director, Provider Reimbursement Division, DMAS, 600 Broad Street, Suite 1300, Richmond, VA  23219, and this notice is available for public review on the Regulatory Town Hall (www.townhall.com).  Comments or inquiries may be submitted, in writing, within 30 days of this notice publication to Mr. Lessard and such comments are available for review at the same address.