S7371-2011 Actions

• Jun 13, 2012: PRINT NUMBER 7371B
• Jun 13, 2012: AMEND AND RECOMMIT TO FINANCE
• May 15, 2012: PRINT NUMBER 7371A
• May 15, 2012: AMEND AND RECOMMIT TO FINANCE
• May 15, 2012: REPORTED AND COMMITTED TO FINANCE
• May 2, 2012: REFERRED TO HEALTH

S7371-2011 Meetings

S7371-2011 Votes

S7371-2011 Memo

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.

S7371-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         7371
 I N  SENATE
 May 2, 2012
 
 Introduced by Sens. YOUNG, BONACIC, BRESLIN, O'MARA, RITCHIE, VALESKY -
 (at  request of the Legislative Commission on Rural Resources) -- read
 twice and ordered printed, and when printed to  be  committed  to  the
 Committee on Health
 AN  ACT to amend the public health law, in relation to payments to rural
 hospitals designated as critical access hospitals
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Subdivision 2-a of section 2807 of the public health law is
 amended by adding a new paragraph (j) to read as follows:

 (J)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SUBDIVISION OR ANY
 OTHER PROVISION OF LAW TO THE CONTRARY, ON AND AFTER  APRIL  FIRST,  TWO
 THOUSAND  THIRTEEN, RATES OF PAYMENT FOR DIAGNOSTIC AND TREATMENT CENTER
 SERVICES, EMERGENCY  SERVICES,  GENERAL  HOSPITAL  OUTPATIENT  SERVICES,
 AMBULATORY  SURGICAL SERVICES AND REFERRED AMBULATORY SERVICES, PROVIDED
 BY A RURAL HOSPITAL DESIGNATED AS A CRITICAL ACCESS HOSPITAL IN  ACCORD
 ANCE  WITH TITLE XVIII OF THE FEDERAL SOCIAL SECURITY ACT SHALL BE EQUAL
 TO ONE HUNDRED ONE PERCENT OF THE REASONABLE  COSTS  OF  A  FACILITY  IN
 PROVIDING  SUCH  SERVICES  TO  PATIENTS  ELIGIBLE  FOR  PAYMENTS MADE IN
 ACCORDANCE WITH THIS SUBDIVISION. REASONABLE COSTS SHALL  BE  DETERMINED
 IN  A  MANNER  CONSISTENT WITH THAT USED TO DETERMINE PAYMENT FOR OUTPA
 TIENT CRITICAL ACCESS HOSPITAL SERVICES  PROVIDED  TO  BENEFICIARIES  OF
 TITLE  XVIII  OF THE FEDERAL SOCIAL SECURITY ACT. FOR FACILITIES WITHOUT
 ADEQUATE COST EXPERIENCE, SUCH RATES SHALL BE BASED  ON  BUDGETED  COSTS
 SUBSEQUENTLY  ADJUSTED  TO  ONE HUNDRED ONE PERCENT OF REASONABLE ACTUAL
 COSTS.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD08758-06-2

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