LDH updates timeline for implementation of new hospital payment method

November 12, 2018


Today, Medicaid Director Jen Steele announced a change in the implementation schedule for Diagnosis Related Groups (DRG) as the new payment method for inpatient hospital services. During a call with hospital industry leaders, she outlined certain issues recently identified with the design of the method that necessitate moving the implementation date from January 1, 2019 to July 1, 2019.

Throughout the process of designing a more modern Medicaid payment method for inpatient hospital services, one of the Department’s goals has been to achieve greater balance in the mix of supplemental and base rate payments. Steele acknowledged the complicated nature of that goal, given the timing of the state budget process and funding commitments that need to be honored.

LDH is working actively to address the issues identified and will provide additional information in the coming weeks on adjustment options. Maintaining the transparent and collaborative character of the design process to date, LDH will continue to dialogue with the hospital industry to gather feedback on potential changes and achieve consensus on a viable solution.

For more information, please contact Erin.Lee@la.gov.