Arkansas Medicaid officials notified hospitals on Dec. 14 about the estimated upper payment limit (UPL) calculations which will apply to the state’s Hospital Assessment Program for state fiscal year (SFY) 2018, which began July 1, 2017. The calculations provide hospital specific amounts for the assessment fees that will be charged to the hospitals and the supplemental payments which they will receive during the 12-month period ending June 30, 2018. The notifications triggered the start of a legally mandated 30-day period during which hospitals may review the numbers and make a case for changes, if any are needed.
Typically, the initial quarterly UPL payments generated through the program for any given SFY have been distributed prior to Christmas. However, a delay in completing the necessary calculations for SFY 2018, coupled with the 30-day review period, made that target impossible for this year.
Therefore, the payments covering the first quarter of SFY 2018 (July 1-September 30) will be the same as quarterly amounts paid during SFY 2017. Those payments should be made by Christmas.
Once the SFY 2018 calculations are final, they will govern the assessment fees and supplemental payments for the second and third quarters of SFY 2018. The final SFY 2018 payments will reflect a true-up amount to reconcile the payment for the first quarter. Any hospital paid too little in that initial payment will have the shortage included in the final quarterly payment. Likewise, any first quarter overpayments will be recovered in the final quarter of the fiscal year.
If you have questions, contact Josh Hooten at (501) 396-6004 or email josh.hooten@dhs.arkansas.gov.