LEGAL NOTICE

COMMONWEALTH OF VIRGINIA

DEPARTMENT OF MEDICAL ASSISTANCE SERVICES

Notice of Intent to Eliminate the Formula for Calculating the Adjustment Factor for Private (Type Two) Inpatient Hospitals and Set the Adjustment Factor at 76%

Notice is hereby given that the Department of Medical Assistance Services (DMAS) intends to eliminate the formula for calculating the adjustment factor for private (Type Two) inpatient hospitals and set the adjustment factor at 76%, 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 purpose of this change is to set the private inpatient hospital adjustment factor at 0.76.  This regulatory action is initiated at the direction of the Governor and General Assembly found in Chapter 951, Item 326 XX of the 2005 Appropriations Act.  This regulatory change is intended to increase inpatient hospital reimbursement to private (Type Two) hospitals in order to promote access to Medicaid services.  Private (Type Two) hospitals have proposed that the discount taken by the Medicaid program should be eliminated and costs should be reimbursed.  This regulatory change lowers the discount taken, but does not eliminate the discount altogether.

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.