May 16, 2013

APR-DRG Transition Funding Pending Governor's Approval

The 2013 Legislature approved the conversion of the Medicaid inpatient hospital payment system from per diem to the new All Patient Refined Diagnosis Related Group (APR-DRG) payment methodology in the General Appropriations Act for Fiscal Year 2013-14. The Legislature also provided $65 million in funding to ease the transition to the new payment methodology. Both the DRG policy and transition funding are located in budget language and a separate implementing bill, instead of a single line item. The Governor is finalizing his veto list and FHA members have been asked to express support for the transitional funding to remain in the 2013 state budget. 

In addition, the FY2013-14 Low Income Pool and DRG Funding Distributions Report is available online.

For more information, contact Paul Belcher, senior vice president, at (850) 222-9800.