LEGAL NOTICE 

COMMONWEALTH OF VIRGINIA 

DEPARTMENT OF MEDICAL ASSISTANCE SERVICES 

NOTICE OF INTENT TO AMEND 

(Pursuant to §1902(a)(13) of the Act (U.S.C. 1396a(a)(13)) 

THE VIRGINIA STATE PLAN FOR MEDICAL ASSISTANCE 

This Notice was posted on May 24, 2024

The Virginia Department of Medical Assistance Services (DMAS) hereby affords the public notice of its intention to amend the Virginia State Plan for Medical Assistance to provide for changes to the Methods and Standards for Establishing Payment Rates—Inpatient Services (12 VAC 30-70-291).   

This notice is intended to satisfy the requirements of 42 C.F.R. § 447.205 and of § 1902(a)(13) of the Social Security Act, 42 U.S.C. § 1396a(a)(13).  A copy of this notice is available for public review from Meredith Lee, DMAS, 600 Broad Street, Suite 1300, Richmond, VA  23219, or via e-mail at: Meridith.Lee@dmas.virginia.gov.

DMAS is specifically soliciting input from stakeholders, providers, and beneficiaries on the potential impacts of the proposed changes discussed in this notice.  Comments or inquiries may be submitted, in writing, within 30 days of this notice publication to Meredith Lee and such comments are available for review upon request.  Comments may also be submitted, in writing, on the Town Hall public comment forum attached to this notice.  

This notice is available for public review on the Regulatory Town Hall (www.townhall.com), on the General Notices page, found at:  https://townhall.virginia.gov/L/generalnotice.cfm 

In accordance with the 2024 Acts of Assembly, Item 288.OO.10, the state plan is being revised to:

Methods and Standards for Establishing Payment Rates—Inpatient Services (12 VAC 30-70)

The state plan is being revised to make supplemental payments through an adjustment to the formula for indirect medical education (IME) reimbursement, using managed care discharge days, for an acute care hospital chain with a level one trauma center in the Tidewater Metropolitan Statistical Area (MSA) in 2020, upon the execution of affiliation agreements with public entities that are capable of transferring funds to the department for purposes of covering the nonfederal share of the authorized payments. Such public entities would enter into an Interagency Agreement with the department for this purpose. Public entities are authorized to use general fund dollars to accomplish this transfer. The funds to be transferred must comply with 42 CFR 433.51 and 433.54. As part of the Interagency Agreements the department shall require the public entities to attest to compliance with applicable CMS criteria. The department shall also require any private hospital and related health systems receiving payments under this Item to attest to compliance with applicable CMS criteria.

The expected increase in annual fee-for-service aggregate expenditures is $568,202 in state general funds and $591,157 in federal funds in federal fiscal year 2024, and $2,272,807 in state general funds and $2,364,628 in federal funds in federal fiscal year 2025.