House Concurrent Resolution No. 25RS-363, introduced by Representative McFarland, establishes a hospital stabilization formula in Louisiana aimed at enhancing the availability and financial sustainability of inpatient and outpatient hospital services. The resolution outlines a framework for hospital assessments and reimbursement enhancements, which will be implemented upon approval from the Centers for Medicare and Medicaid Services (CMS). The Louisiana Department of Health (LDH) is authorized to levy quarterly assessments on certain hospitals based on their net patient revenue, with specific rates set for different types of hospitals. Notably, rural hospitals and small urban private hospitals with 40 licensed beds or fewer are exempt from these assessments.

The resolution also mandates the LDH to provide reimbursement enhancements, including the implementation of directed payment arrangements for hospital services and ensuring that reimbursement rates are maintained at or above current levels starting January 1, 2025. Additionally, the LDH is required to publish reports detailing the Medicaid claims paid to hospitals and the directed payments received, ensuring transparency in the process. If CMS does not approve the proposed assessment, the LDH must develop a new assessment plan, which must be approved by the Joint Legislative Committee on the Budget before implementation. Overall, this resolution aims to create a stable funding mechanism for hospitals while minimizing the financial burden on insured patients.