093_SB0740enr

 
SB740 Enrolled                       LRB093 03235 JLS 03252 b

 1        AN ACT concerning public assistance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Public Aid Code is amended by
 5    changing Section 5-5.02 as follows:


 6        (305 ILCS 5/5-5.02) (from Ch. 23, par. 5-5.02)
 7        Sec. 5-5.02. Hospital reimbursements.
 8        (a)  Reimbursement to Hospitals;  July  1,  1992  through
 9    September  30, 1992.  Notwithstanding any other provisions of
10    this Code or  the  Illinois  Department's  Rules  promulgated
11    under    the    Illinois    Administrative   Procedure   Act,
12    reimbursement to hospitals for services provided  during  the
13    period  July  1, 1992 through September 30, 1992, shall be as
14    follows:
15             (1)  For inpatient hospital services rendered, or if
16        applicable, for inpatient hospital discharges  occurring,
17        on  or  after July 1, 1992 and on or before September 30,
18        1992, the Illinois Department shall  reimburse  hospitals
19        for    inpatient   services   under   the   reimbursement
20        methodologies in effect for each  hospital,  and  at  the
21        inpatient  payment  rate calculated for each hospital, as
22        of June  30,  1992.   For  purposes  of  this  paragraph,
23        "reimbursement  methodologies"  means  all  reimbursement
24        methodologies  that pertain to the provision of inpatient
25        hospital services, including, but  not  limited  to,  any
26        adjustments  for disproportionate share, targeted access,
27        critical care access and uncompensated care,  as  defined
28        by the Illinois Department on June 30, 1992.
29             (2)  For  the  purpose  of calculating the inpatient
30        payment  rate  for  each  hospital  eligible  to  receive
 
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 1        quarterly adjustment payments  for  targeted  access  and
 2        critical  care,  as defined by the Illinois Department on
 3        June 30, 1992, the adjustment payment for the period July
 4        1, 1992 through September 30, 1992, shall be 25%  of  the
 5        annual  adjustment  payments calculated for each eligible
 6        hospital, as of June 30, 1992.  The  Illinois  Department
 7        shall  determine  by  rule  the  adjustment  payments for
 8        targeted access and critical care  beginning  October  1,
 9        1992.
10             (3)  For  the  purpose  of calculating the inpatient
11        payment  rate  for  each  hospital  eligible  to  receive
12        quarterly adjustment payments for uncompensated care,  as
13        defined  by the Illinois Department on June 30, 1992, the
14        adjustment payment for the period August 1, 1992  through
15        September  30,  1992,  shall  be  one-sixth  of the total
16        uncompensated care  adjustment  payments  calculated  for
17        each  eligible  hospital  for the uncompensated care rate
18        year, as defined by the Illinois  Department,  ending  on
19        July  31,  1992.  The Illinois Department shall determine
20        by rule the adjustment payments  for  uncompensated  care
21        beginning October 1, 1992.
22        (b)  Inpatient payments.  For inpatient services provided
23    on  or  after  October 1, 1993, in addition to rates paid for
24    hospital inpatient services pursuant to the  Illinois  Health
25    Finance  Reform  Act,  as  now  or  hereafter amended, or the
26    Illinois Department's prospective reimbursement  methodology,
27    or  any other methodology used by the Illinois Department for
28    inpatient  services,  the  Illinois  Department  shall   make
29    adjustment  payments, in an amount calculated pursuant to the
30    methodology described in paragraph (c) of  this  Section,  to
31    hospitals that the Illinois Department determines satisfy any
32    one of the following requirements:
33             (1)  Hospitals that are described in Section 1923 of
34        the  federal  Social  Security  Act,  as now or hereafter
 
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 1        amended; or
 2             (2)  Illinois  hospitals  that   have   a   Medicaid
 3        inpatient  utilization  rate which is at least one-half a
 4        standard deviation  above  the  mean  Medicaid  inpatient
 5        utilization  rate for all hospitals in Illinois receiving
 6        Medicaid payments from the Illinois Department; or
 7             (3)  Illinois hospitals that on July 1, 1991  had  a
 8        Medicaid   inpatient  utilization  rate,  as  defined  in
 9        paragraph (h) of this Section, that was at least the mean
10        Medicaid inpatient utilization rate for all hospitals  in
11        Illinois  receiving  Medicaid  payments from the Illinois
12        Department and which were located in a planning area with
13        one-third or fewer  excess  beds  as  determined  by  the
14        Illinois  Health  Facilities Planning Board, and that, as
15        of June 30, 1992, were located in a federally  designated
16        Health Manpower Shortage Area; or
17             (4)  Illinois hospitals that:
18                  (A)  have a Medicaid inpatient utilization rate
19             that   is  at  least  equal  to  the  mean  Medicaid
20             inpatient utilization  rate  for  all  hospitals  in
21             Illinois   receiving   Medicaid  payments  from  the
22             Department; and
23                  (B)  also have a Medicaid obstetrical inpatient
24             utilization rate  that  is  at  least  one  standard
25             deviation   above   the  mean  Medicaid  obstetrical
26             inpatient utilization  rate  for  all  hospitals  in
27             Illinois   receiving   Medicaid  payments  from  the
28             Department for obstetrical services; or
29             (5)  Any children's hospital, which means a hospital
30        devoted exclusively to caring for children.   A  hospital
31        which  includes  a facility devoted exclusively to caring
32        for children that is separately licensed as a hospital by
33        a municipality prior  to  September  30,  1998  shall  be
34        considered  a  children's hospital to the degree that the
 
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 1        hospital's Medicaid  care  is  provided  to  children  if
 2        either (i) the facility devoted exclusively to caring for
 3        children  is  separately  licensed  as  a  hospital  by a
 4        municipality prior to September  30,  1998  or  (ii)  the
 5        hospital  has been designated by the State as a Level III
 6        perinatal  care  facility,  has  a   Medicaid   Inpatient
 7        Utilization  rate greater than 55% for the rate year 2003
 8        disproportionate share determination, and has  more  than
 9        10,000   qualified   children  days  as  defined  by  the
10        Department in rulemaking.
11        (c)  Inpatient  adjustment  payments.    The   adjustment
12    payments  required by paragraph (b) shall be calculated based
13    upon the hospital's Medicaid inpatient  utilization  rate  as
14    follows:
15             (1)  hospitals with a Medicaid inpatient utilization
16        rate  below  the  mean shall receive a per day adjustment
17        payment equal to $25;
18             (2)   hospitals   with    a    Medicaid    inpatient
19        utilization  rate  that  is  equal to or greater than the
20        mean Medicaid inpatient utilization rate  but  less  than
21        one  standard deviation above the mean Medicaid inpatient
22        utilization rate  shall  receive  a  per  day  adjustment
23        payment  equal  to  the  sum  of $25 plus $1 for each one
24        percent   that   the   hospital's   Medicaid    inpatient
25        utilization  rate  exceeds  the  mean  Medicaid inpatient
26        utilization rate;
27             (3)   hospitals   with    a    Medicaid    inpatient
28        utilization  rate  that  is  equal to or greater than one
29        standard deviation  above  the  mean  Medicaid  inpatient
30        utilization  rate  but  less than 1.5 standard deviations
31        above the mean Medicaid inpatient utilization rate  shall
32        receive  a per day adjustment payment equal to the sum of
33        $40 plus $7 for each  one  percent  that  the  hospital's
34        Medicaid  inpatient utilization rate exceeds one standard
 
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 1        deviation above the mean Medicaid  inpatient  utilization
 2        rate; and
 3             (4)   hospitals    with    a    Medicaid   inpatient
 4        utilization rate that is equal to  or  greater  than  1.5
 5        standard  deviations  above  the  mean Medicaid inpatient
 6        utilization rate  shall  receive  a  per  day  adjustment
 7        payment  equal  to  the  sum  of $90 plus $2 for each one
 8        percent   that   the   hospital's   Medicaid    inpatient
 9        utilization  rate  exceeds  1.5 standard deviations above
10        the mean Medicaid inpatient utilization rate.
11        (d)  Supplemental adjustment payments.   In  addition  to
12    the adjustment payments described in paragraph (c), hospitals
13    as  defined  in  clauses  (1)  through  (5) of paragraph (b),
14    excluding county hospitals (as defined in subsection  (c)  of
15    Section 15-1 of this Code) and a hospital organized under the
16    University   of   Illinois   Hospital   Act,  shall  be  paid
17    supplemental inpatient adjustment payments of  $60  per  day.
18    For purposes of Title XIX of the federal Social Security Act,
19    these   supplemental   adjustment   payments   shall  not  be
20    classified as adjustment payments to  disproportionate  share
21    hospitals.
22        (e)  The   inpatient  adjustment  payments  described  in
23    paragraphs (c) and (d) shall be increased on October 1,  1993
24    and  annually  thereafter by a percentage equal to the lesser
25    of (i) the increase in the DRI hospital cost  index  for  the
26    most  recent 12 month period for which data are available, or
27    (ii)  the  percentage  increase  in  the  statewide   average
28    hospital  payment  rate  over  the  previous year's statewide
29    average hospital payment rate.   The  sum  of  the  inpatient
30    adjustment  payments  under  paragraphs  (c)  and  (d)  to  a
31    hospital,  other  than  a  county  hospital  (as  defined  in
32    subsection  (c)  of  Section 15-1 of this Code) or a hospital
33    organized under the  University  of  Illinois  Hospital  Act,
34    however,  shall  not exceed $275 per day; that limit shall be
 
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 1    increased on October 1, 1993 and  annually  thereafter  by  a
 2    percentage equal to the lesser of (i) the increase in the DRI
 3    hospital  cost  index for the most recent 12-month period for
 4    which data are available or (ii) the percentage  increase  in
 5    the statewide average hospital payment rate over the previous
 6    year's statewide average hospital payment rate.
 7        (f)   Children's  hospital inpatient adjustment payments.
 8    For  children's  hospitals,  as  defined  in  clause  (5)  of
 9    paragraph (b), the adjustment payments required  pursuant  to
10    paragraphs (c) and (d) shall be multiplied by 2.0.
11        (g)   County hospital inpatient adjustment payments.  For
12    county  hospitals,  as  defined  in subsection (c) of Section
13    15-1 of this Code, there shall be an  adjustment  payment  as
14    determined by rules issued by the Illinois Department.
15        (h)   For  the  purposes  of  this  Section the following
16    terms shall be defined as follows:
17             (1)  "Medicaid inpatient utilization rate"  means  a
18        fraction,  the  numerator  of  which  is  the number of a
19        hospital's inpatient days provided in  a  given  12-month
20        period  to patients who, for such days, were eligible for
21        Medicaid under Title XIX of the federal  Social  Security
22        Act,  and the denominator of which is the total number of
23        the hospital's inpatient days in that same period.
24             (2)  "Mean  Medicaid  inpatient  utilization   rate"
25        means   the  total  number  of  Medicaid  inpatient  days
26        provided by all Illinois Medicaid-participating hospitals
27        divided by the total number of inpatient days provided by
28        those same hospitals.
29             (3)  "Medicaid  obstetrical  inpatient   utilization
30        rate"  means  the ratio of Medicaid obstetrical inpatient
31        days to total Medicaid inpatient days  for  all  Illinois
32        hospitals  receiving  Medicaid payments from the Illinois
33        Department.
34        (i)   Inpatient adjustment payment limit.   In  order  to
 
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 1    meet  the limits of Public Law 102-234 and Public Law 103-66,
 2    the Illinois Department shall by rule adjust disproportionate
 3    share adjustment payments.
 4        (j)  University of Illinois Hospital inpatient adjustment
 5    payments.  For hospitals organized under  the  University  of
 6    Illinois  Hospital  Act, there shall be an adjustment payment
 7    as determined by rules adopted by the Illinois Department.
 8        (k)  The  Illinois  Department  may  by  rule   establish
 9    criteria   for   and  develop  methodologies  for  adjustment
10    payments to hospitals participating under this Article.
11    (Source: P.A. 90-588, eff. 7-1-98; 91-533, eff. 8-13-99.)

12        Section 99.  Effective date.  This Act takes effect  upon
13    becoming law.