Subsequent to a recent GHA webinar discussing the Department of Community Health’s 2013 Hospital Financial Survey (HFS), Myers & Stauffer sent some questions and answers to providers that were raised during the webinar. One issue raised and addressed was the handling of the Medicaid Provider Payment Agreement Act (PPAA) provider fee add-on payments in the HFS.

Myers & Stauffer’s Q&A stated, “It is the position of the Department that add-on payments should not be subject to the provider fee assessment. Add-on amounts should be added back to Medicaid Contractual Adjustments” when completing the HFS.

Draffin & Tucker, LLP has conversed with the Department and they have indicated there is not uniform agreement within the Department on the handling of this issue. They stated once their decision has been reached, if an adjustment related to the add-on
payments is deemed appropriate, it will be handled internally after the HFS is received. In the meantime, we suggest providers do the following:

  • Insert a comment on the signature page stating, “Due to our inability to accurately identify the PPAA add-on amount received from DCH or Medicaid CMOs, we request the Department identify this amount and adjust our Medicaid Contractuals accordingly.”