Department of Health and Hospitals
Office of the Secretary
Bureau of Health Services Financing
The Department of Health and Hospitals, Office of the Secretary, Bureau of Health Services Financing promulgates the following Emergency Rule in the Medical Assistance Program as authorized by R.S. 36:254 and pursuant to Title XIX of the Social Security Act. This Emergency Rule is promulgated in accordance with the Administrative Procedure Act, R.S. 49:953(B)(1) et seq., and shall be in effect for the maximum period allowed under the Act or until adoption of the final Rule, whichever occurs first.
The Department of Health and Hospitals, Office of the Secretary, Bureau of Health Services Financing adopted a Rule which established the prospective reimbursement methodology for inpatient psychiatric hospital services provided in either a free-standing psychiatric hospital or distinct part psychiatric unit of an acute care general hospital (Louisiana Register, Volume 19, Number 6). The June 20, 1993 Rule was later amended to discontinue the practice of automatically applying an inflation adjustment to the reimbursement rates for inpatient psychiatric services in those years when the rates are not rebased (Louisiana Register , Volume 25, Number 5). The May 1999 Rule was subsequently amended to increase the reimbursement rates for inpatient psychiatric hospital services provided in private and public non-state owned and operated free-standing psychiatric hospitals and distinct part psychiatric units based on the weighted average costs reported on the cost report ending in SFY 2002 (Louisiana Register, Volume 30, Number 11).
Act 17 of the 2006 Regular Session of the Louisiana Legislature authorized expenditures to the Medical Vendor Program to increase the Medicaid reimbursement rates paid to private providers for hospital inpatient and outpatient services. In compliance with the directives of Act 17, the Department by Emergency Rule amended the reimbursement methodology for inpatient psychiatric services to increase the Medicaid reimbursement rates paid to private (non-state) distinct part psychiatric units and freestanding psychiatric hospitals. ( Louisiana Register, Volume 32, Number 10). This Emergency Rule is being promulgated to continue the provisions of the August 1, 2006 Emergency Rule.
This Emergency Rule is being promulgated to promote the health and welfare of Medicaid recipients by ensuring sufficient provider participation in the Medicaid Program for the provision of inpatient psychiatric services and recipient access to providers of these medically necessary services.
Emergency Rule
Effective for dates of service on or after November 30, 2006, the Department of Health and Hospitals, Office of the Secretary, Bureau of Health Services Financing increases the prospective per diem rate paid to private (non-state) distinct part psychiatric units and freestanding psychiatric hospitals for inpatient services by 3.85 percent of the rate on file for July 31, 2006.
Implementation of the provisions of this proposed Rule shall be contingent upon the approval of the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services.
Interested persons may submit written comments to Jerry Phillips, Bureau of Health Services Financing, P.O. Box 91030, Baton Rouge, LA 70821-9030. He is responsible for responding to inquiries regarding this Emergency Rule. A copy of this Emergency Rule is available for review by interested parties at parish Medicaid offices.
Frederick P. Cerise, M.D., M.P.H.
Secretary
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