Notice is hereby given that the Department of Medical Assistance Services (DMAS) intends to modify its supplemental payments for inpatient and outpatient services to state-owned hospitals and clinics, and to local government-owned hospitals, clinics, and nursing facilities, 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).  DMAS intends to modify supplemental payments for inpatient services provided by local government-owned hospitals and nursing facilities and outpatient services provided by local government-owned clinics.  DMAS intends to eliminate supplemental payments for inpatient services provided by state hospitals and outpatient services provided by state hospitals and clinics, and local government-owned hospitals.  Instead of supplemental payments for inpatient services for local government-owned hospitals and nursing facilities, DMAS will draw down federal funds for unreimbursed Medicaid costs as certified by the provider through cost reports.  The methodology for supplemental payments for outpatient services for local government owned-clinics will be modified such that each community services board with outpatient services will be paid part of the supplemental payment proportional to its own services.  The methodology for determining the gross supplemental payment will remain unchanged. 

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.