[Federal Register Volume 73, Number 116 (Monday, June 16, 2008)]
[Notices]
[Page 34024]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-13525]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


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

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

ACTION: Notice of Single-Source Non-Competitive Supplemental Awards.

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    Funding Amount: $19,100,000.
    Period of Performance: June 9, 2008-September 30, 2009.
    CFDA: 93.776.

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

    Purpose: The Secretary has authorized an additional $19.1 million 
in supplemental grant funds to be made available to the States of 
Louisiana and Mississippi. Based on the share of total Medicare 
inpatient payments made to each State's eligible general acute care 
hospitals and inpatient psychiatric facilities (IPFs) located in the 
Federal Emergency Management Agency (FEMA) designated counties/parishes 
in calendar year 2006 (the latest and most complete year of Medicare 
billing data available to us), funding is being allocated in the 
following proportions: 53 percent to Louisiana ($10,143,671) and 47 
percent to Mississippi ($8,956,329).
    Since its inception, the Provider Stabilization Grant (PSG) program 
has been used to fund State payments to general acute care hospitals, 
skilled nursing facilities, IPFs, and community mental health centers 
in impacted communities that may face financial pressures because of 
changing wage rates that are not yet reflected in Medicare prospective 
payment system (PPS) payment methodologies. For this third round of PSG 
funding, CMS determined that these supplemental grant funds would be 
used by the States to make payments to only those Medicare 
participating inpatient PPS (IPPS) hospitals and IPFs that are 
currently paid under a Medicare PPS and that are the most 
significantly, negatively impacted (financial or otherwise) related to 
Hurricane Katrina.
    Although the States had significant discretion in determining the 
payment distribution methodology, the methodology had to clearly 
reflect the basis upon which the State would determine ``negative 
impact'' and then how each provider would receive an appropriate share 
of the funds. Grant funds may not be distributed to IPPS hospitals and 
IPFs that are not in operation or that are outside of the FEMA 
Hurricane Katrina designated counties/parishes for individual and 
public assistance. The States' payment methodologies were to specify 
the relevant time periods and any other factors that would be 
considered in distributing available grant funds according to the 
principles specified above, and were subject to approval by CMS.
    The States were also allowed to choose to use a portion of the 
funds (not to exceed 20% of the grant) to address immediate, unmet, 
health care infrastructure needs that objective data indicate was 
caused as a direct result of Hurricane Katrina and or its subsequent 
flooding. This optional provision was also subject to CMS approval.
    Under the authority of section 6201(a)(4) of the Deficit Reduction 
Act 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 to enable States to make payments to assist general 
acute care hospitals and IPFs that are paid under a Medicare PPS, with 
the financial pressures that may result from changing wage rates in 
those impacted communities. Louisiana and Mississippi are the only 
States with knowledge and ability to administer a grant designed to 
affect impacted communities in their own respective States. For the 
reasons cited above, the Secretary has directed CMS to offer 
supplemental single-source awards to the States of Louisiana and 
Mississippi.

FOR FURTHER INFORMATION CONTACT: Wendy J. Alexander, Ph.D., Health 
Insurance Specialist, Finance Systems and Budget Group, Centers for 
Medicaid and State Operations, Centers for Medicare & Medicaid 
Services, Mail Stop S3-13-15, 7500 Security Boulevard, Baltimore, MD 
21244, (410) 786-5245.

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

    Dated: June 10, 2008.
Kerry Weems,
Acting Administrator, Centers for Medicare & Medicaid Services.
 [FR Doc. E8-13525 Filed 6-13-08; 8:45 am]
BILLING CODE 4120-01-P