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016.06.20-250.420. Urban Hospitals Qualifying under the Medicaid Inpatient Utilization Rate.

AR ADC 016.06.20-250.420Arkansas Administrative Code

West's Arkansas Administrative Code
Title 016. Department of Human Services
Division 06. Division of Medical Services
Rule 20. Hospital/Critical Access Hospital (CAH)/End-Stage Renal Disease (ESRD) Provider Manual (Refs & Annos)
Section 250.000. Reimbursement.
Ark. Admin. Code 016.06.20-250.420
016.06.20-250.420. Urban Hospitals Qualifying under the Medicaid Inpatient Utilization Rate.
Currentness
A. Disproportionate share payment to urban hospitals qualifying under the Medicaid inpatient utilization rate is based on the percentage by which a hospital's Medicaid inpatient utilization rate exceeds the mean Medicaid inpatient utilization rate for in-state hospitals.
B. The written expression of the formula is as follows below in 1 and 2.
1. The disproportionate share payment to urban hospitals qualifying under the Medicaid inpatient utilization rate is a minimum payment of $ 1000.00, plus
2. Ten percent (0.1) multiplied by the result of the following calculations:
a. (The individual hospital's Medicaid inpatient utilization rate, minus one standard deviation above the mean Medicaid utilization rate), multiplied by
b. (The hospital's allowable inpatient cost identified on the cost report).
C. Example:
Hospital G's total inpatient reimbursement (excluding DSH) for its fiscal year 2001 is $ 6,468,414.00. Hospital G's Medicaid inpatient utilization rate is 0.5583. The mean Medicaid inpatient utilization rate is 0.2126 and the standard deviation is 0.0942.
1. Plugging these numbers into the formula above results in:
$ 1000.00 + 0.1 x (0.5583 - (0.0942 + 0.2126)) x $ 6,468,414.00
2. Performing the calculations one at a time, beginning within the inside parentheses:
$ 1000.00 + 0.1 x (0.5583 - 0.3068) x 6,468,414.00 =
$ 1000.00 + 0.1 x 0.2515 x 6,468,414.00 =
$ 1000.00 + 0.02515 x 6,468,414.00 =
$ 1000.00 + $ 162,680.61 = $ 163,680.61
3. The DSH amount payable (subject to any other limits) to Hospital G is $ 163,680.61.

Credits

Eff. Oct. 13, 2003.
<Editor’s Note: Nonfunctioning links so in original.>
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 016.06.20-250.420, AR ADC 016.06.20-250.420
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