House Concurrent Resolution No. 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 structured assessment system for hospitals, which will be levied quarterly based on their net patient revenue, contingent upon approval from the Centers for Medicare and Medicaid Services (CMS). The assessment rates vary by hospital type, with specific exemptions for smaller and rural hospitals. The resolution also emphasizes the importance of preserving rural hospitals and minimizing the financial burden on insured patients due to the costs associated with uninsured residents.

In addition to the assessment, the resolution mandates reimbursement enhancements for hospitals, including the implementation of directed payment arrangements for inpatient and outpatient services and the expansion of Medicaid coverage to maximize federal matching funds. The Louisiana Department of Health is tasked with developing and submitting necessary state plan amendments to CMS and is required to publish detailed reports on reimbursement enhancements and payments received by hospitals. This comprehensive approach aims to create a reliable funding source for healthcare services while ensuring transparency and accountability in the financial operations of hospitals across the state.