Legislature Passes State Budget That Protects Healthcare Funding

capitol building

Michigan CapitolThe Michigan Legislature approved Sept. 22 the fiscal year (FY) 2022 state budget. The governor has indicated support for the budget that goes into effect Oct. 1, and the agreement protects vital funding sources for patient care in Michigan hospitals and expands access to healthcare services. The MHA published a statement on the passage of the budget Sept. 22.

Specifically, the budget reflects the protection or enhancement of many MHA priorities:

  • Continues enhanced outpatient Medicaid rates. For FY 2022, the increase in rates is projected to result in the continuation of funding that translates to $270 million in net revenue for hospitals.
  • Protects funding for the rural access pool and obstetrical stabilization fund.
  • Continues to maintain funding for disproportionate share hospitals (DSH) and graduate medical education (GME), pursuant to the MHA board-supported multiyear budget agreement.
  • Fully funds the Healthy Michigan Plan.
  • Continues the additional $2.35 hourly wage increase for direct care workers at skilled nursing facilities and enhanced reimbursement for ground ambulance services to reimburse at 100% of the Medicare rate.
  • Continues expanded Medicaid coverage for women up to 12 months postpartum.
  • Adds $3 million in new funding to set up a statewide system of care for stroke and ST-elevated myocardial infarction (STEMI) emergencies within the existing statewide trauma system.

In addition, nearly $10 billion in state and federal funding is still available that will be allocated through a supplemental budget process. The MHA will advocate the state use portions of the funding to address the association’s behavioral health priorities and workforce issues.

Members with questions on the state budget may contact Adam Carlson at the MHA.

Resources Available for FY 2018 Disproportionate Share Hospital Audits

Myers and Stauffer, Michigan’s contractor for the federally mandated Medicaid disproportionate share hospital (DSH) audits, recently hosted a webinar regarding the fiscal year (FY) 2018 audits currently underway for hospitals that received a payment from any of the FY 2018 Medicaid DSH pools. The timeline for the FY 2018 audits is:

  • Feb. 22 — DSH surveys and Medicaid fee-for-service paid claims data distributed to hospitals.
  • March 19 — completed surveys due to Myers and Stauffer. Hospitals are encouraged to upload their completed survey and other data to the Myers and Stauffer web portal. For information on registering for the portal, contact Kellen Teel at the MHA. Exhibits that include protected health information must be submitted accordingly.
  • March – May — desk reviews to be completed.
  • May – June — on-site/expanded reviews.
  • Sept. 30 — draft report due to the Medical Services Administration.
  • Dec. 31 — Final report due to the Centers for Medicare & Medicaid Services.

Myers and Stauffer encourages hospital staff to review a pre-recorded DSH training that covers general DSH survey instructions and updates. Michigan-specific materials from the Feb. 24 are available upon request from Crystal Mitchell at the MHA. Hospitals should present questions to Myers and Stauffer via email or by calling (800) 374-6858. Members with other questions regarding the DSH audits should contact Kellen Teel or Vickie Kunz at the MHA.

Webinar Reviews Requirements for Upcoming Disproportionate Share Hospital Audits

Myers and Stauffer LC, Michigan’s contractor for the federally mandated Medicaid disproportionate share hospital (DSH) audits, will soon distribute information requests to hospitals for the state fiscal year (FY) 2018 DSH audits. Hospitals that received payments from any of the Medicaid DSH pools for FY 2018, including the hospital provider tax-funded outpatient uncompensated care DSH pool, are subject to these audits.

The MHA is coordinating an educational webinar with representatives from Myers and Stauffer and the Medical Services Administration (MSA) to assist hospitals in completing the audit process. The Michigan-specific webinar is scheduled for 1 to 3 p.m. Feb. 24 and will review:

  • Hospital reporting requirements.
  • Steps necessary for the Michigan Medicaid program to comply with the Centers for Medicare & Medicaid Services (CMS) reporting and audit requirements.
  • Data that will be requested from hospitals that received payments from any Medicaid DSH pool for state FY 2018.
  • Lessons learned from past audits, particularly those for FY 2017.

A draft report is due to the MSA Sept. 30, with the final audit report due to the CMS Dec. 31. The Feb. 24 webinar will feature a formal presentation covering Michigan-specific data requirements followed by a question-and- answer period. Myers and Stauffer encourages hospital staff to review a pre-recorded DSH training that covers general DSH survey instructions and updates prior to the webinar.

No registration is required for the webinar. Hospitals are encouraged to login by 1 p.m. Feb. 24 using the password “MIDSH.” Participation via phone is available by calling (844) 740-1264 and using attendance code 185-802-8641.

Members with questions regarding the DSH audits should contact Kellen Teel or Vickie Kunz at the MHA. For assistance in accessing the webinar, contact Crystal Mitchell at the MHA.

Medicaid Disproportionate Share Hospital Audit Training Materials Available

The MHA recently coordinated an educational webinar with Myers and Stauffer, Michigan’s audit firm for the federally mandated Medicaid disproportionate share hospital (DSH) audits. The fiscal year 2017 DSH audits have begun, in accordance with the following timeline:

  • Feb. 21                      Surveys distributed to hospitals
  • March 20                   Completed surveys due
  • March – May              Desk reviews
  • May – June                On-site/expanded reviews
  • Sept. 30                     Draft report due to Medical Services Administration
  • Dec. 31                      Final report due to the Centers for Medicare & Medicaid Services

Myers and Stauffer provided general DSH training prior to the Feb. 24 webinar that focused on Michigan-specific information. A recording of the general DSH training is available, and members may request copies of the PowerPoint presentations from both sessions by contacting Crystal Mitchell at the MHA. Myers and Stauffer encourage hospitals to contact them directly with any questions or concerns at (800) 374-6858. For more information, members may contact Vickie Kunz at the MHA.