Arkansas: DRG Conversion Plan

Published by Navigant Consulting, Inc.

This report provides a Conversion Plan to the Arkansas Department of Human Services (DHS) for converting Arkansas Medicaid’s inpatient hospital reimbursement methodology from the current per diem-based approach to a Diagnosis Related Group (DRG) methodology. This report in response to the Arkansas legislature, which in House Bill 1016 required that DHS, in coordination with the Arkansas Hospital Association, develop a plan for an inpatient DRG conversion by December 31, 2017. The mandated Conversion Plan included the following requirements:

• How supplemental payments to hospitals will be considered
• Whether funding for the transition to APR DRGs will be provided to hospitals
• Whether certain hospitals will be exempt from APR DRGs
• Estimated impacts of conversion for both general acute hospitals and CAHs

Publication Date: 2017

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Source: Navigant Inc. Arkansas DRG Conversion Plan. Report to the Arkansas Department of Human Services. Chicago: Navigant, 2017.