House Concurrent Resolution No. 26RS-664, 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, small urban private acute hospitals with 40 licensed beds or fewer, freestanding psychiatric Medicaid disproportionate share hospitals, and rural hospitals 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 the expansion of Medicaid coverage to maximize federal matching funds. The LDH is required to publish details of the approved payment arrangements and quarterly reports on Medicaid claims and payments received by hospitals. Additionally, if CMS does not approve the proposed assessment, the LDH must develop a new assessment plan and obtain approval from the Joint Legislative Committee on the Budget before implementation. Overall, this resolution aims to create a reliable funding source for healthcare services while minimizing the financial burden on insured residents.