In 2012, the Florida Legislature passed a bill that required the Agency for Healthcare Administration (AHCA) to transition Medicaid payments to a Diagnosis Related Group method from current per diem payment method. Going forward, payments will be based on a single base rate, DRG case weights and policy adjusters specific to the pediatric population. Nicklaus Children’s Hospital and All Children’s Hospital, two of three freestanding children’s hospitals in Florida, were recognized as High Medicaid Utilizers and given a policy adjuster (2.278) to ensure that the cost payments are no less than they were under the current per diem payment method. We urge legislators to keep hospital inpatient and outpatient rates whole during the upcoming Legislative Session.


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