Proposed Constitutional Amendment provides that the legislature, by concurrent resolution, may annually adopt a Hospital Stabilization Formula to enhance the economic viability of Louisiana hospitals and reduce shifting the cost of caring for Louisiana’s needy residents to the state’s insured residents. Further provides that the first formula, adopted by the favorable vote of 2/3 of the elected members of the legislature, shall define and establish the base reimbursement level under the Medicaid Program to hospitals for inpatient and outpatient services for Fiscal Year 2012-2013.

Proposed Constitutional Amendment provides that each formula shall include and establish assessments to be paid by the hospitals, reimbursement enhancements under the Medicaid Program or its successor, and any additional provisions necessary to implement the formula. Further provides that assessments or reimbursement enhancements established in the formula adopted by the legislature shall not be implemented until approved by the federal authority that administers the Medicaid Program.

Proposed Constitutional Amendment requires the legislature to annually appropriate an amount necessary to fund the base reimbursement level for hospitals established in the most recent formula adopted by the legislature and to annually appropriate the balance of the Hospital Stabilization Fund solely to fund the reimbursement enhancements as provided in the most recent formula adopted by the legislature.

Proposed Constitutional Amendment prohibits the governor or the legislature from reducing the appropriation funding the base reimbursement level or the reimbursement enhancements to satisfy a budget deficit, except the governor may reduce the appropriation to the base reimbursement level if the reduction does not exceed the average reduction of those made to the appropriations and reimbursement for other providers under the Medicaid Program or its successor and with the written consent of 2/3 of the elected members of the legislature, if the legislature is in session, or the approval of 2/3 of the members of the Joint Legislative Committee on the Budget or its successor, if the legislature is not in session.

Proposed Constitutional Amendment creates the Hospital Stabilization Fund and requires the treasurer to deposit all proceeds from the assessment collected pursuant to the Hospital Stabilization Formula into the fund. Further provides that appropriations from the fund shall be restricted to funding the reimbursement enhancements in the Hospital Stabilization Formula adopted by the legislature for the fiscal year in which the assessment is collected.