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016.06.20-250.430. Hospitals Qualifying under the Low Income Utilization.

AR ADC 016.06.20-250.430Arkansas 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 016.06.20-250.430
016.06.20-250.430. Hospitals Qualifying under the Low Income Utilization.
A. Urban and rural acute care hospitals qualifying for disproportionate share payments based on their low income utilization rate receive an amount based on the difference between the hospital's low income utilization rate and the threshold rate of 25%. (A hospital's low-income utilization rate must exceed 25% to qualify the hospital for disproportionate share payments.)
B. The written expression of the formula is: Acute care hospitals qualifying for disproportionate share payments based on their low-income utilization rate receive $ 1000.00 plus
1. (0.04) times (the individual hospital's low-income utilization rate minus 25%) times
2. (the hospital's fiscal year Medicaid per diem reimbursement).
The expression “fiscal year Medicaid per diem reimbursement” is quoted exactly as it appears in the Social Security Act. It does not refer to the interim per diem. It means the allowable costs from the provider's cost report.
C. Example:
Total reimbursement for Hospital H's allowable costs for fiscal year 2001 is $ 1,363,032.00. The hospital's low-income utilization rate is 39.3 percent.
1. Plugging the numbers into the formula, we get:
$ 1000.00 + 0.04 x (0.393 - 0.25) x $ 1,363,032.00 =
$ 1000.00 + (0.04 x 0.143) x 1,363,032.00 =
$ 1000.00 + (.00572 x 1,363,032.00) =
$ 1000.00 + $ 7796.54 = $ 8,796.54
2. Hospital H's DSH payment is $ 8796.54.

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 016.06.20-250.430, AR ADC 016.06.20-250.430
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