Notice of Intent to Increase the Disproportionate Share Hospital (DSH) Reimbursement Limit for FY 2005

Notice is hereby given that the Department of Medical Assistance Services (DMAS) intends to modify its reimbursement plan for inpatient hospitals 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).  The change contained in this public notice is occurring in response to the federal Benefits Improvement and Protection Act (BIPA), which now permits states to temporarily increase the DSH limit from 100% to 175% of uncompensated care costs for state fiscal years 2004 and 2005.  DMAS intends to make a supplemental DSH payment of $40 million to Type I hospitals in FY2005.  DMAS may not be able to make this payment without increasing the DSH limit.  DMAS proposes to fund this payment by an intergovernmental transfer.

A copy of this notice is available for public review from Scott Crawford, 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. Crawford and such comments are available for review at the same address.