AN ACT RELATIVE TO HOSPITAL RATE AGREEMENTS AND LIMITATIONS.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Clause (b) of section 51 of chapter 6A of the
General Laws, as appearing
in section 1B of chapter 372 of the acts of 1982, is hereby amended by
striking out subclause (ii) and inserting in place thereof the following subclause:-
(ii) One hundred per cent plus the greater of: (1) one hundred
fourteen per cent and (2) the per cent of free care and bad debt services of
the hospital, multiplied by the projected patient care costs for a hospital
service corporation and to purchasers and third party payors who reimburse
acute hospitals on the basis of charges.
SECTION 2. Paragraph 3 of subsection B of section 68 of said
chapter 6A, as most recently amended by section 6 of chapter 389 of the
acts of 1983, is hereby amended by adding the following two sentences:- For
those acute hospitals which exhibit a payor mix where a minimum of
seventy-five per cent of the acute hospital's gross patient service revenue
was attributable to Title XVIII and Title XIX of the federal social
security act and local and state government subsidy and free care and bad
debt, this calculation shall not be adjusted due to changes in fiscal year
nineteen hundred and eighty-two Medicaid outpatient rates which may be
required to conform to Volume 42 of the Code of Federal Regulations
SECTION 3. The second paragraph of paragraph (d) of subsection C of
section 68 of chapter 6A of the General Laws is hereby amended by inserting
after the first sentence of the second paragraph the following
sentence:- The Title XIX share of free care shall be calculated using
Title XIX charges divided by total charges.
SECTION 4. The provisions of sections 2 and 3 shall become effective
upon receipt of any federal approval required by the terms of the waiver of
Title XIX Principles of Reimbursement dated September thirtieth, nineteen
hundred and eighty-two.