Chapter 6A. Medicaid Hospital Outpatient Supplemental Payments and Medicaid Hospital Inpatient Rate Supplements.
Subchapter I. 2013 - 2014 Medicaid Hospital Inpatient Rate Supplement. [Expired]
§ 44–631. Definitions. [Expired]
Expired.
§ 44–632. Hospital Fund. [Expired]
Expired.
§ 44–633. Assessments on hospitals. [Expired]
Expired.
§ 44–634. Interest and penalties. [Expired]
Expired.
§ 44–635. Appeals. [Expired]
Expired.
§ 44–636. Federal determinations; suspension and termination of assessment. [Expired]
Expired.
§ 44–637. Rules. [Expired]
Expired.
§ 44–638. Sunset.
This chapter shall expire on September 30, 2014.
Subchapter II. 2013 - 2014 Medicaid Hospital Outpatient Supplemental Payment. [Expired]
§ 44–651. Definitions. [Expired]
Expired.
§ 44–652. Hospital Provider Fee Fund. [Expired]
Expired.
§ 44–653. Hospital provider fee. [Expired]
Expired.
§ 44–654. Applicability of fees. [Expired]
Expired.
§ 44–655. Medicaid outpatient hospital access payments. [Expired]
Expired.
§ 44–656. Quarterly notice and collection. [Expired]
Expired.
§ 44–657. Multi-hospital systems, closure, merger, and new hospitals. [Expired]
Expired.
§ 44–658. Rules. [Expired]
Expired.
§ 44–659. Applicability date; sunset.
(a) This chapter shall apply as of May 1, 2013.
(b) This chapter shall sunset as of September 30, 2014.
Subchapter III. 2015 - 2016 Medicaid Hospital Outpatient Supplemental Payment. [Expired]
§ 44–661.01. Definitions. [Expired]
Expired.
§ 44–661.02. Hospital Provider Fee Fund. [Expired]
Expired.
§ 44–661.03. Hospital provider fee. [Expired]
Expired.
§ 44–661.04. Applicability of fees. [Expired.]
Expired.
§ 44–661.05. Medicaid outpatient hospital access payments. [Expired]
Expired.
§ 44–661.06. Quarterly notice and collection. [Expired]
Expired.
§ 44–661.07. Multi-hospital systems, closure, merger, and new hospitals. [Expired.]
Expired.
§ 44–661.08. Rules. [Expired]
Expired.
§ 44–661.09. Sunset.
This chapter shall expire on September 30, 2016.
Subchapter IV. 2015 - 2016 Medicaid Hospital Inpatient Rate Supplement. [Expired]
§ 44–662.01. Definitions.
For the purposes of this chapter, the term:
(1) “Department” means the Department of Health Care Finance.
(2) “Hospital” shall have the same meaning as provided in § 44-501(a)(1) but excludes any hospital operated by the federal government and any specialty hospital, as defined by the District of Columbia’s Medicaid State Plan (“State Plan”), or a hospital that is reimbursed under a specialty hospital reimbursement methodology under the State Plan.
(3) “Hospital system” means any group of hospitals licensed separately but operated, owned, or maintained by a common entity.
(4) “Inpatient net patient revenue” means the amount calculated in accordance with generally accepted accounting principles for hospitals as derived from each hospital’s filed Hospital and Hospital Health Care Complex Cost Report (Form CMS-2552-10), filed for the period ending between October 1, 2012, and June 30, 2013, using the references below:
(A) The sum of: Worksheet G-2; Column 1; Lines 1, 2, 3, 4, 16 and 18.
(B) Minus: The ratio of the sum of Worksheet G-2; Column 1; Lines 5, 6, and 7 divided by Worksheet G-2; Column 1; Line 17 multiplied by Worksheet G-2; Column 1; Line 18.
(C) Divided by: Worksheet G-2; Column 3; Line 28
(D) Multiplied by: Worksheet G-2; Column 1; Line 3
(5) “Medicaid” means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.) (“Social Security Act”), and by § 1-307.02, and administered by the Department.
§ 44–662.02. Hospital Fund.
(a) There is established as a special fund the Hospital Fund (“Fund”), which shall be administered by the Department in accordance with subsection (c) of this section.
(b) Revenue from the following sources shall be deposited in the Fund:
(1) Fees collected under this chapter;
(2) Interest and penalties collected under this chapter; and
(3) Other amounts collected under this chapter.
(c) Money in the Fund shall be used solely as set forth in § 44-662.03.
(d)(1) The money deposited in the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation; provided, that any remaining money in the Fund at the end of each fiscal year shall be refunded to hospitals in proportion to the amounts paid by them.
§ 44–662.03. Hospital provider fee.
(a)(1) Beginning October 1, 2015, and except as provided in subsection (b) of this section and § 44-662.06, the District, through the Office of Tax and Revenue, may charge each hospital a fee based on its inpatient net patient revenue.
(2) The fee shall be charged at a uniform rate necessary to generate no more than $10.4 million. Of this amount, $1.4 million may be used to support the Medicaid Managed Care Organization rates for inpatient hospitalization. The remaining amount shall be used to support the maintenance of inpatient Medicaid Fee-for-Service rates at the District Fiscal Year (“DFY”) 2015 level of 98% of cost to non-specialty hospitals.
(3) The fee collected pursuant to this section shall be deposited in the Hospital Fund, established by § 44-662.02.
(b) A psychiatric hospital that is an agency or a unit of the District government is exempt from the fee imposed under subsection (a) of this section, unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case a psychiatric hospital that is an agency or a unit of the District government shall pay the fee imposed by subsection (a) of this section.
(c) By August 1, 2015, the Department shall submit a provider tax waiver application to the Center for Medicare and Medicaid Services to ensure the provisions of this chapter qualify as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act.
§ 44–662.04. Quarterly notice and collection.
(a) The fee imposed under § 44-662.03 shall be due and payable by the 15th of the last month of each DFY quarter.
(b) The fee imposed under § 44-662.03 shall be calculated, due, and payable on a quarterly basis, but shall not be due and payable until the District issues written notice to each hospital informing the hospital of its fee rate, inpatient net patient revenue subject to the fee, and the fee amount owed on a quarterly basis, including, in the initial written notice from the District to the hospital, all fee amounts owed beginning with the period October 1, 2015, to ensure all applicable fee obligations have been identified.
(c)(1) If a hospital fails to pay the full amount of its fee by the date required, the unpaid balance shall accrue interest at the rate of 1.5% per month or any fraction thereof, which shall be added to the unpaid balance.
(2) The Chief Financial Officer may arrange a payment plan for the amount of the fee and interest in arrears.
(d) The payment by the hospital of the fee created in this chapter shall be reported as an allowable cost for purposes of Medicaid hospital reimbursement.
§ 44–662.05. Multi-hospital systems, closure, merger, and new hospitals.
(a) If a hospital system conducts, operates, or maintains more than one hospital licensed by the Department of Health, the hospital system shall pay the fee for each hospital separately.
(b)(1) Notwithstanding § 44-662.03, if a hospital system or person that is subject to a fee under § 44-662.03 ceases to conduct, operate, or maintain a hospital, as evidenced by the transfer or surrender of a hospital license, the fee for the DFY in which the cessation occurs shall be adjusted by multiplying the fee computed under § 44-662.03 by a fraction, the numerator of which is the number of days in the year during which the hospital system or person conducts, operates, or maintains the hospital and the denominator of which is 365.
(2) Immediately upon ceasing to conduct, operate, or maintain a hospital, the hospital system or person shall pay the fee for the year as so adjusted, to the extent not previously paid.
(c) Notwithstanding any other provision of this chapter, a hospital system or person who conducts, operates, or maintains a hospital, upon notice by the Department, shall pay the fee required under § 44-662.03 in accordance with subsection (a) of this section on the due date stated in the notice and on the regular installment due dates for the DFY occurring after the due date of the initial notice.
§ 44–662.06. Federal determinations; suspension and termination of assessment.
(a) If the Centers for Medicare and Medicaid Services determines that an assessment imposed on a hospital pursuant to this chapter does not satisfy the requirements for federal financial participation set forth in section 1903(w) of the Social Security Act that determination shall not affect the validity, amount, applicable rate, or any other terms of an assessment on other hospitals imposed by this chapter.
(b) If the Centers for Medicare and Medicaid Services determines that an exclusion for specialty hospitals under this chapter would prevent an assessment imposed by this chapter from qualifying as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act, the exclusion of specialty hospitals shall not be made.
§ 44–662.07. Rules.
The Mayor, pursuant to subchapter I of Chapter 2 of Title 5 [§ 2-501 et seq.], may issue rules to implement the provisions of this chapter.
§ 44–662.08. Sunset.
This chapter shall expire on September 30, 2016.
Subchapter V. 2016 - 2017 Medicaid Hospital Outpatient Supplemental Payment. [Expired]
§ 44–663.01. Definitions.
For the purposes of this subchapter, the term:
(1) "Department" means the Department of Health Care Finance.
(2) "Hospital" shall have the same meaning as provided in § 44-501(a)(1), but excludes any hospital operated by the federal government.
(3) "Hospital system" means any group of hospitals licensed separately, but operated, owned, or maintained by a common entity.
(4) "Medicaid" means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.), and by § 1-307.02, and administered by the Department.
(5) "Outpatient gross patient revenue" means the amount calculated in accordance with generally accepted accounting principles for hospitals that is reported as the sum of Lines 18 and 19; Column 2; Worksheet G-2 of the Hospital and Hospital Health Care Complex Cost Report (Form CMS 2552-10), filed for the period ending between October 1, 2013, and September 30, 2014.
§ 44–663.02. Hospital Provider Fee Fund.
(a) There is established as a special fund the Hospital Provider Fee Fund ("Fund"), which shall be administered by the Department in accordance with subsections (c) and (d) of this section.
(b) Revenue from the following sources shall be deposited in the Fund:
(1) Fees collected under this subchapter; and
(2) Interest and penalties collected under this subchapter.
(c) Money in the Fund may only be used for the following purposes:
(1) Making Medicaid outpatient hospital access payments to hospitals as required under § 44-663.05;
(2) Payment of administrative expenses incurred by the Department or its agent in performing the activities authorized by this subchapter in an amount not to exceed $150,000 annually; and
(3) Providing refunds to hospitals pursuant to § 44-663.04.
(d) Money in the Fund may not be used to replace money appropriated to the Medicaid program.
(e)(1) The money deposited into the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.
§ 44–663.03. Hospital provider fee.
(a) Beginning October 1, 2016, and subject to § 44-663.04, the District may charge each hospital a fee based on its outpatient gross patient revenue. The fee shall be charged at a uniform rate necessary to generate the following:
(1) An amount equal to the non-federal share of the total available spending room under the Medicaid upper payment limit for private hospitals applicable to District Fiscal Year ("DFY") 2017 consistent with the federal approval of the authorizing Medicaid State Plan amendment; plus
(2) An amount equal to the non-federal share of the total available spending room under the Medicaid upper payment limit for District-operated hospitals applicable to DFY 2017 consistent with the federal approval of the authorizing Medicaid State Plan amendment; plus
(3) An amount equal to the Department's administrative expenses as described in § 44-663.02(c)(2).
(b) A psychiatric hospital that is an agency or a unit of the District government is exempt from the fee imposed under subsection (a) of this section, unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case a psychiatric hospital that is an agency or a unit of the District government shall pay the fee imposed by subsection (a) of this section.
§ 44–663.04. Applicability of fees.
(a) The fee imposed by § 44-663.03 shall not be due and payable until such time that the federal Centers for Medicare and Medicaid Services approves the Medicaid State Plan amendment authorizing the Medicaid payments described in § 44-663.05.
(b) The fee imposed by § 44-663.03 shall cease to be imposed, and any moneys remaining in the Fund shall be refunded to hospitals in proportion to the amounts paid by them, if:
(1) The Department makes changes in its rules that reduce the hospital inpatient or outpatient Medicaid payment rates, including adjustment to payment rates that are in effect on October 1, 2015; or
(2) The payments to hospitals required under § 44-663.05 are modified in any way other than to secure federal approval of such payments as described in § 44-663.05 or are not eligible for federal matching funds under section 1903(w) of the Social Security Act, approved July 30, 1965 (70 Stat. 349; 42 U.S.C. §1396b(w)) ("Social Security Act").
(c) The fee imposed by § 44-663.03 shall not take effect or shall cease to be imposed if the fee is determined to be an impermissible tax under section 1903(w)(3)(B) of the Social Security Act by the Centers for Medicare and Medicaid Services.
(d) Should the fee imposed by § 44-663.03 not take effect or cease to be imposed, moneys in the Fund derived from the imposed fee shall be disbursed in accordance with § 44-663.05 to the extent federal matching is available. If federal matching is not available due to a determination by the Centers for Medicare and Medicaid Services that the fee is impermissible, any remaining moneys shall be refunded to hospitals in proportion to the amounts paid by them.
§ 44–663.05. Medicaid outpatient hospital access payments.
(a)(1) For visits and services beginning October 1, 2016, quarterly Medicaid outpatient hospital access payments shall be made to each private hospital.
(2) Each payment will be equal to the hospital's DFY 2014 outpatient Medicaid payments divided by the total in District private hospital DFY 2014 outpatient Medicaid payments multiplied by 1/4 of the total outpatient private hospital access payment pool.
(3) The total outpatient private hospital access payment pool is equal to the total available spending room under the private hospital outpatient Medicaid upper payment limit for DFY 2017.
(b)(1) For visits and services beginning October 1, 2016, outpatient hospital access payments shall be made to the United Medical Center.
(2) Each payment will be equal to one quarter of the total outpatient public hospital access payment pool.
(3) The total outpatient public hospital access payment pool is equal to the total available spending room under the District-operated hospital outpatient Medicaid upper payment limit for DFY 2017.
(c) The quarterly Medicaid outpatient hospital access payments shall be made within 15 business days after the end of each DFY quarter for the Medicaid visits and services rendered during that quarter.
(d) No payments shall be made under this section until such time that the federal Centers for Medicare and Medicaid Services approves the Medicaid State Plan amendment authorizing the Medicaid payments described in this subchapter.
(e) The Medicaid payment methodologies authorized under this subchapter shall not be altered in any way unless such alteration is necessary to gain federal approval from the Centers for Medicare and Medicaid Services.
§ 44–663.06. Quarterly notice and collection.
(a) The fee imposed under § 44-663.03, which shall be calculated, due, and payable on a quarterly basis, shall be due and payable by the 15th of the last month of each DFY quarter; provided, that the fee shall not be due and payable until:
(1) The District issues written notice that the payment methodologies for payments to hospitals required under § 44-663.05 have been approved by the federal Centers for Medicare and Medicaid Services; and
(2) The District issues written notice to the hospital informing the hospital of its fee rate, outpatient gross patient revenue subject to the fee, and the fee amount owed on a quarterly basis, including, in the initial written notice from the District to the hospital, all fee amounts owed beginning with the period commencing on October 1, 2016, to ensure all applicable fee obligations have been identified.
(b)(1) If a hospital fails to pay the full amount of the fee in accordance with this subchapter, the unpaid balance shall accrue interest at the rate of 1.5% per month or any fraction thereof, which shall be added to the unpaid balance.
(2) The Chief Financial Officer may arrange a payment plan for the amount of the fee and interest in arrears.
(c) The payment by the hospital of the fee created in this subchapter shall be reported as an allowable cost for purposes of Medicaid hospital reimbursement.
§ 44–663.07. Multi-hospital systems, closure, merger, and new hospitals.
(a) If a hospital system conducts, operates, or maintains more than one hospital licensed by the Department of Health, the hospital system shall pay the fee for each hospital separately.
(b)(1) Notwithstanding any other provision in this subchapter, if a hospital system or person ceases to conduct, operate, or maintain a hospital that is subject to a fee under § 44-663.03, as evidenced by the transfer or surrender of the hospital license, the fee for the DFY in which the cessation occurs shall be adjusted by multiplying the fee computed under § 44-663.03 by a fraction, the numerator of which is the number of days in the year during which the hospital system or person conducted, operated, or maintained the hospital, and the denominator of which is 365.
(2) Immediately upon ceasing to conduct, operate, or maintain a hospital, the hospital system or person shall pay the fee for the year as so adjusted, to the extent not previously paid.
(c) Notwithstanding any other provision in this subchapter, a hospital system or person who conducts, operates, or maintains a hospital, upon notice by the Department, shall pay the fee computed under § 44-663.03 and subsection (a) of this section in installments on the due date stated in the notice and on the regular installment due dates for the DFY occurring after the due dates of the initial notice.
§ 44–663.08. Rules.
The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter.
§ 44–663.09. Sunset.
This subchapter shall expire on September 30, 2017.
Subchapter VI. 2016 - 2017 Medicaid Hospital Inpatient Rate Supplement. [Expired]
§ 44–663.11. Definitions.
For the purposes of this subchapter, the term:
(1) "Department" means the Department of Health Care Finance.
(2) "Hospital" shall have the same meaning as provided in § 44-501(a)(1), but excludes any hospital operated by the federal government and any specialty hospital, as defined by the District of Columbia's Medicaid State Plan ("State Plan"), or a hospital that is reimbursed under a specialty hospital reimbursement methodology under the State Plan.
(3) "Hospital system" means any group of hospitals licensed separately but operated, owned, or maintained by a common entity.
(4) "Inpatient net patient revenue" means the amount calculated in accordance with generally accepted accounting principles for hospitals as derived from each hospital's filed Hospital and Hospital Health Care Complex Cost Report (Form CMS-2552-10), filed for the period ending between October 1, 2013, and September 30, 2014, using the references below:
(A) The sum of: Worksheet G-2; Column 1; Lines 1, 2, 3, 4, 16 and 18;
(B) Minus: The ratio of the sum of Worksheet G-2; Column 1; Lines 5, 6, and 7 divided by Worksheet G-2; Column 1; Line 17 multiplied by Worksheet G-2; Column 1; Line 18;
(C) Divided by: Worksheet G-2; Column 3; Line 28; and
(D) Multiplied by: Worksheet G-3; Column 1; Line 3.
(5) "Medicaid" means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.) ("Social Security Act"), and by § 1-307.02, and administered by the Department.
§ 44–663.12. Hospital Fund.
(a) There is established as a special fund the Hospital Fund ("Fund"), which shall be administered by the Department in accordance with subsection (c) of this section.
(b) Revenue from the following sources shall be deposited in the Fund:
(1) Fees collected under this subchapter;
(2) Interest and penalties collected under this subchapter; and
(3) Other amounts collected under this subchapter.
(c) Money in the Fund shall be used solely as set forth in § 44-663.13(a)(2).
(d)(1) The money deposited in the Fund, and interest earned, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation; provided, that any remaining money in the Fund at the end of each fiscal year shall be refunded to hospitals in proportion to the amounts paid by them.
§ 44–663.13. Hospital provider fee.
(a)(1) Beginning October 1, 2016, and except as provided in subsection (b) of this section and § 44-663.16, the District, through the Office of Tax and Revenue, may charge each hospital a fee based on its inpatient net patient revenue.
(2) The fee shall be charged at a uniform rate necessary to generate no more than $10.4 million. Of this amount, $1.4 million may be used to support the Medicaid Managed Care Organization rates for inpatient hospitalization. The remaining amount shall be used to support the maintenance of inpatient Medicaid Fee-for-Service rates at the District Fiscal Year ("DFY") 2015 level of 98% of cost to non-specialty hospitals.
(3) The fee collected pursuant to this section shall be deposited in the Hospital Fund, established by § 44-663.12.
(b) A psychiatric hospital that is an agency or a unit of the District government is exempt from the fee imposed under subsection (a) of this section, unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case a psychiatric hospital that is an agency or a unit of the District government shall pay the fee imposed by subsection (a) of this section.
(c) If necessary, by August 1, 2016, the Department shall submit a provider tax waiver application to the Center for Medicare and Medicaid Services to ensure the provisions of this subchapter qualify as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act.
§ 44–663.14. Quarterly notice and collection.
(a) The fee imposed under § 44-663.13 shall be due and payable by the 15th of the last month of each DFY quarter.
(b) The fee imposed under § 44-663.13 shall be calculated, due, and payable on a quarterly basis, but shall not be due and payable until the District issues written notice to each hospital informing the hospital of its fee rate, inpatient net patient revenue subject to the fee, and the fee amount owed on a quarterly basis, including, in the initial written notice from the District to the hospital, all fee amounts owed beginning with the period October 1, 2016, to ensure all applicable fee obligations have been identified.
(c)(1) If a hospital fails to pay the full amount of its fee by the date required, the unpaid balance shall accrue interest at the rate of 1.5% per month or any fraction thereof, which shall be added to the unpaid balance.
(2) The Chief Financial Officer may arrange a payment plan for the amount of the fee and interest in arrears.
(d) The payment by the hospital of the fee created in this subchapter shall be reported as an allowable cost for purposes of Medicaid hospital reimbursement.
§ 44–663.15. Multi-hospital systems, closure, merger, and new hospitals.
(a) If a hospital system conducts, operates, or maintains more than one hospital licensed by the Department of Health, the hospital system shall pay the fee for each hospital separately.
(b)(1) Notwithstanding § 44-663.13, if a hospital system or person that is subject to a fee under § 44-663.13 ceases to conduct, operate, or maintain a hospital, as evidenced by the transfer or surrender of a hospital license, the fee for the DFY in which the cessation occurs shall be adjusted by multiplying the fee computed under § 44-663.13 by a fraction, the numerator of which is the number of days in the year during which the hospital system or person conducts, operates, or maintains the hospital and the denominator of which is 365.
(2) Immediately upon ceasing to conduct, operate, or maintain a hospital, the hospital system or person shall pay the fee for the year as so adjusted, to the extent not previously paid.
(c) Notwithstanding any other provision of this subchapter, a hospital system or person who conducts, operates, or maintains a hospital, upon notice by the Department, shall pay the fee required under § 44-663.13 in accordance with subsection (a) of this section on the due date stated in the notice and on the regular installment due dates for the DFY occurring after the due date of the initial notice.
§ 44–663.16. Federal determinations; suspension and termination of assessment.
(a) If the Centers for Medicare and Medicaid Services determines that an assessment imposed on a hospital pursuant to this subchapter does not satisfy the requirements for federal financial participation set forth in section 1903(w) of the Social Security Act, that determination shall not affect the validity, amount, applicable rate, or any other terms of an assessment on other hospitals imposed by this subchapter.
(b) If the Centers for Medicare and Medicaid Services determines that an exclusion for specialty hospitals under this subchapter would prevent an assessment imposed by this subchapter from qualifying as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act, the exclusion of specialty hospitals shall not be made.
§ 44–663.17. Rules.
The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter.
§ 44–663.18. Sunset.
This subchapter shall expire on September 30, 2017.
Subchapter VII. Hospital Outpatient Supplemental Payment.
§ 44–664.01. Definitions.
For the purposes of this subchapter, the term:
(1) "Department" means the Department of Health Care Finance.
(2) "Hospital" shall have the same meaning as provided in § 44-501(a)(1), but excludes any hospital operated by the federal government.
(3) "Hospital system" means any group of hospitals licensed separately, but operated, owned, or maintained by a common entity.
(4) "Medicaid" means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.), and by § 1-307.02, and administered by the Department.
(5) "Outpatient gross patient revenue" means the amount calculated in accordance with generally accepted accounting principles for hospitals that is reported as the sum of Lines 18 and 19; Column 2; Worksheet G-2 of the Hospital and Hospital Health Care Complex Cost Report (Form CMS 2552-10), filed for the period between October 1 and September 30, 2018.
§ 44–664.02. Hospital Provider Fee Fund.
(a) There is established as a special fund the Hospital Provider Fee Fund ("Fund"), which shall be administered by the Department in accordance with subsections (c) and (d) of this section.
(b) Revenue from the following sources shall be deposited in the Fund:
(1) Fees collected under this subchapter; and
(2) Interest and penalties collected under this subchapter.
(c) Money in the Fund may only be used for the following purposes:
(1) Making Medicaid outpatient hospital access payments to hospitals as required under § 44-664.05, either directly or through payments to managed care organizations;
(2) Payment of administrative expenses incurred by the Department or its agent in performing the activities authorized by this subchapter in an amount not to exceed $150,000 annually; and
(3) Providing refunds to hospitals pursuant to § 44-664.04.
(d) Money in the Fund may not be used to replace money appropriated to the Medicaid program.
(e)(1) The money deposited into the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation.
§ 44–664.03. Hospital provider fee.
(a) Beginning October 1, 2019, and subject to § 44-664.04, the District may charge each hospital a fee based on its outpatient gross patient revenue. The fee shall be charged at a uniform rate necessary to generate the following:
(1) An amount equal to the non-federal share of the total available spending room under the outpatient Medicaid upper payment limit for private hospitals applicable to District Fiscal Year 2020, consistent with requirements and approvals from the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services; plus
(2) An amount equal to the non-federal share of the total available spending room under the outpatient Medicaid upper payment limit for District operated hospitals applicable to District Fiscal Year 2020, consistent with the federal approval of the authorizing Medicaid State Plan amendment or associated templates and other authorities; plus
(3) An amount equal to the Department's administrative expenses as described in § 44-664.02(c)(2).
(b) A psychiatric hospital that is an agency or a unit of the District government is exempt from the fee imposed under subsection (a) of this section, unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case a psychiatric hospital that is an agency or a unit of the District government shall pay the fee imposed by subsection (a) of this section.
§ 44–664.04. Applicability of fees.
(a) The fee imposed by § 44-664.03 shall not be due and payable until such time that the District obtains approvals required by the Centers for Medicare and Medicaid Services for authorizing the Medicaid payments described in § 44-664.05.
(b) The fee imposed by § 44-664.03 shall cease to be imposed, and any moneys remaining in the Fund shall be refunded to hospitals in proportion to the amounts paid by them, if:
(1) The Department makes changes in its rules that reduce the hospital inpatient or outpatient Medicaid payment rates, including adjustment to payment rates that are in effect on October 1, 2018; or
(2) The payments to hospitals required under § 44-664.05 are modified in any way other than to secure federal approval of such payments as described in § 44-664.05 or are not eligible for federal matching funds under section 1903(w) of the Social Security Act, approved July 30, 1965 (70 Stat. 349; 42 U.S.C. § 1396b(w)) ("Social Security Act").
(c) The fee imposed by § 44-664.03 shall not take effect or shall cease to be imposed if the fee is determined to be an impermissible tax under section 1903(w)(3)(B) of the Social Security Act by the Centers for Medicare and Medicaid Services.
(d) Should the fee imposed by § 44-664.03 not take effect or cease to be imposed, moneys in the Fund derived from the imposed fee shall be disbursed in accordance with § 44-664.05 to the extent federal matching is available. If federal matching is not available due to a determination by the Centers for Medicare and Medicaid Services that the fee is impermissible, any remaining moneys shall be refunded to hospitals in proportion to the amounts paid by them.
§ 44–664.05. Medicaid outpatient hospital access payments; payments to MCOs.
(a) For visits and services beginning October 1, 2020, the District shall pay managed care organizations ("MCOs") at a rate sufficient to support payments to hospitals located in the District for outpatient services at a rate that is not less than 130% of the District Fiscal Year 2020 fee-for-service base rate and shall direct MCOs to pay such rate to their participating hospitals located in the District for such services.
(b) No payment shall be made under this section until such time that the Centers for Medicare and Medicaid Services approves the Medicaid State Plan amendment, associated template, and other authorities authorizing the Medicaid payments described in this section.
(b-1) For visits and services beginning October 1, 2021, the District shall make fee-for-service outpatient rate payments to hospitals at a rate that is an aggregate of 100% of Medicaid allowable costs for the fiscal year in which payments are being made.
(c) The Medicaid payment methodologies authorized under this section shall not be altered unless such alteration is necessary to gain approval from the Centers for Medicare and Medicaid Services.
§ 44–664.06. Quarterly notice and collection.
(a) The fee imposed under § 44-664.03, which shall be calculated, due, and payable on a quarterly basis, shall be due and payable by the 15th of the last month of each DFY quarter; provided, that the fee shall not be due and payable until:
(1) The District issues written notice that the payment methodologies for payments to hospitals required under § 44-664.05 have been approved by the Centers for Medicare and Medicaid Services; and
(2) The District issues written notice to the hospital informing the hospital of its fee rate, outpatient gross patient revenue subject to the fee, and the fee amount owed on a quarterly basis, including, in the initial written notice from the District to the hospital, all fee amounts owed beginning with the period commencing on October 1 of each year, to ensure all applicable fee obligations have been identified.
(b)(1) If a hospital fails to pay the full amount of the fee in accordance with this subchapter, the unpaid balance shall accrue interest at the rate of 1.5% per month or any fraction thereof, which shall be added to the unpaid balance.
(2) The Chief Financial Officer may arrange a payment plan for the amount of the fee and interest in arrears.
(c) The payment by the hospital of the fee created in this subchapter shall be reported as an allowable cost for purposes of Medicaid hospital reimbursement.
§ 44–664.07. Multi-hospital systems, closure, merger, and new hospitals.
(a) If a hospital system conducts, operates, or maintains more than one hospital licensed by the Department of Health, the hospital system shall pay the fee for each hospital separately.
(b)(1) Notwithstanding any other provision in this subchapter, if a hospital system or person ceases to conduct, operate, or maintain a hospital that is subject to a fee under § 44-664.03, as evidenced by the transfer or surrender of the hospital license, the fee for the DFY in which the cessation occurs shall be adjusted by multiplying the fee computed under § 44-664.03 by a fraction, the numerator of which is the number of days in the year during which the hospital system or person conducted, operated, or maintained the hospital, and the denominator of which is 365.
(2) Immediately upon ceasing to conduct, operate, or maintain a hospital, the hospital system or person shall pay the fee for the year as so adjusted, to the extent not previously paid.
(c) Notwithstanding any other provision in this subchapter a hospital system or person who conducts, operates, or maintains a hospital, upon notice by the Department, shall pay the fee computed under § 44-664.03 and subsection (a) of this section in installments on the due date stated in the notice and on the regular installment due dates for the DFY occurring after the due dates of the initial notice.
§ 44–664.08. Rules.
The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter.
§ 44–664.09. Sunset.
This subchapter shall expire on September 30, 2029.
Subchapter VIII. Hospital Inpatient Rate Supplement.
§ 44–664.11. Definitions.
For the purposes of this subchapter, the term:
(1) "Department" means the Department of Health Care Finance.
(2) "Hospital" shall have the same meaning as provided in § 44-501(a)(1), but excludes any hospital operated by the federal government and any specialty hospital, as defined by the District of Columbia's Medicaid State Plan ("State Plan"), or a hospital that is reimbursed under a specialty hospital reimbursement methodology under the State Plan.
(3) "Hospital system" means any group of hospitals licensed separately but operated, owned, or maintained by a common entity.
(4) "Inpatient net patient revenue" means the amount calculated in accordance with generally accepted accounting principles for hospitals as derived from each hospital's filed Hospital and Hospital Health Care Complex Cost Report (Form CMS-2552-10), filed for the period between October 1 and September 30 of the period 3 fiscal years prior to the fiscal year the fee is assessed, using the references below:
(A) The sum of: Worksheet G-2; Column 1; Lines 1, 2, 3, 4, 16 and 18;
(B) Minus: The ratio of the sum of Worksheet G-2; Column 1; Lines 5, 6, and 7 divided by Worksheet G-2; Column 1; Line 17 multiplied by Worksheet G-2; Column 1; Line 18;
(C) Divided by: Worksheet G-2; Column 3; Line 28; and
(D) Multiplied by: Worksheet G-3; Column 1; Line 3.
(5) "Medicaid" means the medical assistance programs authorized by Title XIX of the Social Security Act, approved July 30, 1965 (79 Stat. 343; 42 U.S.C. § 1396 et seq.) ("Social Security Act"), and by § 1-307.02, and administered by the Department.
§ 44–664.12. Hospital Fund.
(a) There is established as a special fund the Hospital Fund ("Fund"), which shall be administered by the Department in accordance with subsection (c) of this section.
(b) Revenue from the following sources shall be deposited in the Fund:
(1) Fees collected under this subchapter;
(2) Interest and penalties collected under this subchapter; and
(3) Other amounts collected under this subchapter.
(c) Money in the Fund shall be used solely as set forth in § 44-664.13(a)(2).
(d)(1) The money deposited in the Fund shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.
(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation; provided, that any remaining money in the Fund at the end of each fiscal year shall be refunded to hospitals in proportion to the amounts paid by them.
§ 44–664.13. Hospital provider fee.
(a)(1) Beginning October 1, 2020, and except as provided in subsection (b) of this section and § 44-664.16, the District, through the Office of Tax and Revenue, may charge each hospital a fee based on its inpatient net patient revenue.
(2) The fee shall be charged at a uniform rate necessary to generate no more than $8,454,038 to support inpatient Medicaid Fee-for-Service and managed care rates at the District Fiscal Year 2015 level of not less than 98% of cost to non-specialty hospitals.
(3) The fee collected pursuant to this section shall be deposited in the Hospital Fund, established by § 44-664.12.
(b) A psychiatric hospital that is an agency or a unit of the District government is exempt from the fee imposed under subsection (a) of this section, unless the exemption is adjudged to be unconstitutional or otherwise invalid, in which case a psychiatric hospital that is an agency or a unit of the District government shall pay the fee imposed by subsection (a) of this section.
(c) If necessary, by August 1, 2019, the Department shall submit a provider tax waiver application to the Center for Medicare and Medicaid Services to ensure the provisions of this subchapter qualify as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act.
§ 44–664.14. Quarterly notice and collection.
(a) The fee imposed under § 44-664.13 shall be due and payable by the 15th of the last month of each DFY quarter.
(b) The fee imposed under § 44-664.13 shall be calculated, due, and payable on a quarterly basis, but shall not be due and payable until the District issues written notice to each hospital informing the hospital of its fee rate, inpatient net patient revenue subject to the fee, and the fee amount owed on a quarterly basis, including, in the initial written notice from the District to the hospital, all fee amounts owed beginning with the period October 1 of each District Fiscal Year, to ensure all applicable fee obligations have been identified.
(c)(1) If a hospital fails to pay the full amount of its fee by the date required, the unpaid balance shall accrue interest at the rate of 1.5% per month or any fraction thereof, which shall be added to the unpaid balance.
(2) The Chief Financial Officer may arrange a payment plan for the amount of the fee and interest in arrears.
(d) The payment by the hospital of the fee created in this subchapter shall be reported as an allowable cost for purposes of Medicaid hospital reimbursement.
§ 44–664.15. Multi-hospital systems, closure, merger, and new hospitals.
(a) If a hospital system conducts, operates, or maintains more than one hospital licensed by the Department of Health, the hospital system shall pay the fee for each hospital separately.
(b)(1) Notwithstanding § 44-664.13, if a hospital system or person that is subject to a fee under § 44-664.13 ceases to conduct, operate, or maintain a hospital, as evidenced by the transfer or surrender of a hospital license, the fee for the DFY in which the cessation occurs shall be adjusted by multiplying the fee computed under § 44-664.13 by a fraction, the numerator of which is the number of days in the year during which the hospital system or person conducts, operates, or maintains the hospital and the denominator of which is 365.
(2) Immediately upon ceasing to conduct, operate, or maintain a hospital, the hospital system or person shall pay the fee for the year as so adjusted, to the extent not previously paid.
(c) Notwithstanding any other provision of this subchapter, a hospital system or person who conducts, operates, or maintains a hospital, upon notice by the Department, shall pay the fee required under § 44-664.13 in accordance with subsection (a) of this section on the due date stated in the notice and on the regular installment due dates for the DFY occurring after the due date of the initial notice.
§ 44–664.16. Federal determinations; suspension and termination of assessment.
(a) If the Centers for Medicare and Medicaid Services determines that an assessment imposed on a hospital pursuant to this subchapter does not satisfy the requirements for federal financial participation set forth in section 1903(w) of the Social Security Act, that determination shall not affect the validity, amount, applicable rate, or any other terms of an assessment on other hospitals imposed by this subchapter.
(b) If the Centers for Medicare and Medicaid Services determines that an exclusion for specialty hospitals under this subchapter would prevent an assessment imposed by this subchapter from qualifying as a broad-based health care related tax, as that term is defined in section 1903(w)(3)(B) of the Social Security Act, the exclusion of specialty hospitals shall not be made.
§ 44–664.17. Rules.
The Mayor, subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this subchapter.
§ 44–664.18. Applicability; sunset.
This subchapter shall expire on September 30, 2029.
