[Federal Register Volume 72, Number 41 (Friday, March 2, 2007)]
[Notices]
[Page 9538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3655]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Notice of Single-Source Grant Award to Louisiana, Alabama, and 
Mississippi for a Project Entitled, ``Deficit Reduction Act Hurricane 
Katrina Healthcare Related Provider Stabilization''

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: New Grant Awards.

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    Funding Amount: $160,000,000.
    Period of Performance: February 12, 2007-September 30, 2009.

SUMMARY: The Secretary has authorized a total of $160 million in grant 
funds available to all three States. Based on each eligible IPPS 
hospital's and SNF's share of total Medicare inpatient payments in the 
FEMA designated counties in calendar year 2005 (the latest and most 
complete year of Medicare billing data available to us), this funding 
is being allocated for each State in the following proportions: 45 
percent to Louisiana ($71,633,492), 38 percent to Mississippi 
($60,556,425) and 17 percent to Alabama ($27,810,083).
    This grant program is to fund State payments to general, acute care 
hospitals, and skilled nursing facilities in impacted communities that 
may face financial pressures because of changing wage rates that are 
not yet reflected in Medicare PPS payment methodologies.
    The grant funds must be used by the States to make payments to all 
Medicare participating general hospitals, acute care hospitals, and 
SNFs that are currently paid under a Medicare PPS in the impacted 
communities. States have some flexibility in determining the 
methodology to determine the timing and amount of provider payments, 
but the methodology must reflect each provider's share of total 
Medicare payments during a specified period of time. Grant funds may 
not be distributed to hospitals and SNFs that are not in operation. 
States' payment methodologies should specify the relevant time periods 
and any other factors that will be considered in distributing available 
grant funds according to the principles specified above, and are 
subject to approval by CMS.

Justification for Exception to Competition

    The Secretary has invoked his authority to restore health care in 
impacted communities affected by Hurricane Katrina by offering this 
unique funding opportunity which will enable States to make payments to 
assist hospitals and SNFs that are paid under a Medicare PPS, with the 
financial pressures that may result from changing wage rates in those 
impacted communities. For the reasons cited above, the Secretary has 
directed the Centers for Medicare & Medicaid Services to offer a 
single-source award to the States of Louisiana, Alabama and 
Mississippi.

FOR FURTHER INFORMATION CONTACT: Wendy J. Taparanskas, PhD., Health 
Insurance Specialist, Office of the Center Director, Centers for 
Medicaid and State Operations, Centers for Medicare & Medicaid 
Services, Mail Stop S2-26-12, 7500 Security Boulevard, Baltimore, MD 
21244, (410) 786-5245.

    Authority: Section 6201(a)(4) of the Deficit Reduction Act of 
2005 (DRA) .

(Catalog of Federal Domestic Assistance Program No. 93.779)

    Dated: February 13, 2007.
Leslie V. Norwalk,
Acting Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. E7-3655 Filed 3-1-07; 8:45 am]
BILLING CODE 4120-01-P