HB-5934, As Passed Senate, June 12, 2018
(as amended June 12, 2018)
May 8, 2018, Introduced by Reps. Canfield, McCready, Inman, Howrylak, Cole, Allor, Maturen, LaFave, Hauck, Dianda, Cambensy, Wentworth, Rendon, Glenn, VanderWall and Chatfield and referred to the Committee on Appropriations.
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding section 110a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 110a. (1) Beginning in the fiscal year that ends
September 30, 2019, and annually after that, the department shall
allocate not less than $26,000,000.00 of its general fund
appropriation to a rural hospital access pool to assist sole
community hospitals, critical access hospitals, and rural hospitals
with providing services to low-income residents.
(2) All of the following apply to a payment from the rural
hospital access pool:
(a) <<$7,978,300.00>> shall be proportionately
divided annually
among sole community hospitals and rural hospitals that provide
obstetrical care to Medicaid beneficiaries, based on the proportion
of Medicaid deliveries performed during the second immediately
preceding fiscal year.
(b) The balance remaining in the rural hospital access pool
after distribution made under subdivision (a) shall be annually
allocated as follows:
(i) Payments shall first be allocated to reimburse sole
community hospitals, critical access hospitals, and rural hospitals
for unreimbursed and incurred costs for services delivered to fee
for service inpatient and outpatient Medicaid beneficiaries as
reported during the second immediately preceding fiscal year cost
reporting period.
(ii) Money remaining in the rural hospital access pool after
all distributions are made under subparagraph (i) shall be
allocated based on each sole community hospital's, critical access
hospital's, and rural hospital's proportion of Medicaid managed
care outpatient payments for services performed during the second
immediately preceding fiscal year.
(c) Notwithstanding subdivisions (a) and (b), no hospital
shall receive more than 10% of the total funding available under
the rural hospital access pool in any 1 fiscal year.
(3) The department must implement this section in a manner
that complies with all federal requirements necessary to ensure the
maximum amount of federal matching funds is obtained.
(4) As used in this section:
(a) "Critical access hospital" means a hospital designated and
certified as a critical access hospital under 42 CFR 485.606.
(b) "Medicaid" means the medical assistance administered by
the department under this act.
(c) "Rural hospital" means a hospital that meets both of the
following:
(i) Has 50 or fewer staffed beds.
(ii) Is located within a county with a population of not more
than 165,000 and within a city, village, or township with a
population of not more than 15,000 based on the 2010 federal
decennial census.
(d) "Sole community hospital" means a hospital classified as a
sole community hospital under 42 CFR 412.92.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.