SECTION 36.
Chapter 58 of the acts of 2006 is hereby amended by striking out section 128 and inserting in place thereof the following section: -
Section 128. Notwithstanding any general or special law to the contrary, in fiscal year 2007, and in accordance with section 13B of chapter 118E of the General Laws, $90,000,000 shall be made available from the Commonwealth Care Trust Fund, established by section 2OOO of chapter 29 of the General Laws, to pay for an increase in the Medicaid rates paid to acute hospitals, as defined in section 1 of chapter 118G of the General Laws, and physicians, but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. For fiscal year 2008, an additional $90,000,000 for a total of $180,000,000, shall be made available to pay for an increase in the Medicaid rates paid to acute hospitals, as defined in said section 1 of said chapter 118G of the General Laws, and physicians, but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. For fiscal year 2009, an additional $90,000,000, for a total of $270,000,000, shall be made available to pay for an increase in the Medicaid rates paid to acute hospitals, as defined in said section 1 of said chapter 118G, and physicians, but not less than 15 per cent of the increase shall be allocated to rate increases for physicians. A portion of the fiscal year 2008 and fiscal year 2009 hospital rate increases relating to adherence to quality standards and achievement of performance benchmarks under section 13B of chapter 118E of the General Laws may be paid in the succeeding fiscal year. For purposes of payments to hospitals under this section, fiscal year shall mean the hospital fiscal year, and for purposes of any payments to physicians under this section, fiscal year shall mean the state fiscal year. Fiscal year 2008 and 2009 payments are subject to specific appropriation to the executive office of health and human services MassHealth program accounts for this purpose.
Summary:
This section implements pay for performance for hospitals, as mandated in the 2006 Health Care Reform legislation. It also requires the rate proceeds to be appropriated at MassHealth, including the last quarter of rates from FY07, which will be paid in the first quarter of FY08, which aligns the timing of when hospital rates are appropriated with when they are spent.