[Federal Register Volume 72, Number 164 (Friday, August 24, 2007)]
[Notices]
[Pages 48648-48649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-16579]


-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Medicaid Program; Notice of Single-Source Grant Award to the 
States of Alabama, Louisiana, and Mississippi for the Grant Entitled 
``Deficit Reduction Act-Hurricane Katrina Healthcare Related Provider 
Stabilization''

AGENCY: Centers for Medicare & Medicaid Services (CMS).

ACTION: Single-Source Non-Competitive Supplemental Awards.

-----------------------------------------------------------------------

    Funding Amount: $60,000,000.
    Period of Performance: June 18, 2007--September 30, 2009.
    CFDA: 93.779.

    Authority: Section 6201(a)(4) of the Deficit Reduction Act of 
2005 (DRA).

Purpose

    The Secretary has authorized an additional $60 million in 
supplemental DRA grant funds to be made available to the States of 
Alabama, Louisiana, and Mississippi. The methodology is based on the 
relative share of each eligible general acute care hospital's, 
inpatient psychiatric facility's (IPF), community mental health 
center's (CMHC) and skilled nursing facility's (SNF) total Medicare 
inpatient payments in the FEMA designated counties in calendar year 
2006 (the latest and most complete year of Medicare billing data 
available to CMS). As a result, this funding is being allocated for 
each State in the following proportions: 44 percent to Louisiana 
($26,223,040), 38 percent to

[[Page 48649]]

Mississippi ($23,243,995) and 17 percent to Alabama ($10,532,965).
    This supplemental grant program is to fund State payments to 
general, acute care hospitals, IPFs, CMHCs, and SNFs in impacted 
communities that face financial pressures because of changing wage 
rates that are not yet reflected in Medicare PPS payment methodologies.
    The grant funds must be used by the States to make payments to all 
Medicare participating general acute care hospitals, IPFs, CMHCs and 
SNFs that are currently paid under a Medicare PPS in the impacted 
communities. States have some flexibility in determining the 
methodology to determine the timing and amount of provider payments, 
but the methodology must reflect each provider's relative share of 
total Medicare payments during a specified period of time.
    Grant funds may not be distributed to general acute care hospitals, 
IPFs, CMHCs and SNFs that are not in operation. States' payment 
methodologies should specify the relevant time periods and any other 
factors that will be considered in distributing available grant funds 
according to the principles specified above, and are subject to 
approval by CMS.
    Under the authority of section 6201(a)(4) of the DRA of 2005, the 
Secretary, Department of Health and Human Services, has invoked his 
authority to restore health care in impacted communities affected by 
Hurricane Katrina by offering this unique funding opportunity which 
will enable States to make payments to assist general acute care 
hospitals, IPFs, CMHCs, and SNFs that are paid under a Medicare PPS, 
with the financial pressures that may result from changing wage rates 
in those impacted communities.
    Louisiana, Mississippi and Alabama are the only states with 
knowledge and ability to administer a grant designed to affect impacted 
communities in their states. For the reasons cited above, the Secretary 
has directed the CMS to offer supplemental single-source awards to the 
States of Louisiana, Alabama and Mississippi.

FOR FURTHER INFORMATION CONTACT: Wendy J. Taparanskas, Ph.D., Health 
Insurance Specialist, Office of the Center Director, Centers for 
Medicaid and State Operations, Centers for Medicare & Medicaid 
Services, Mail Stop S2-26-12, 7500 Security Boulevard, Baltimore, MD 
21244, (410) 786-5245.

    Authority: Section 6201(a)(4) of the Deficit Reduction Act of 
2005 (DRA).

    Dated: July 2, 2007.
Leslie V. Norwalk,
Acting Administrator, Centers for Medicare & Medicaid Services.
 [FR Doc. E7-16579 Filed 8-23-07; 8:45 am]
BILLING CODE 4120-01-P