House Journal: Page 1690: Tuesday, May 1, 2001
24 g. The department shall apply the geographic wage
25 index adjustment annually to the case-mix adjusted
26 component of the modified price-based case-mix
27 reimbursement rate for the nursing facilities located
28 in standard metropolitan statistical area counties in
29 Iowa identified by HCFA. This rate shall be
30 calculated using the case-mix adjusted costs of the
31 nursing facility, not to exceed $8 per patient day. A
32 nursing facility may request an exception to
33 application of the geographic wage index based upon a
34 reasonable demonstration of wages, location, and total
35 cost. A request for an exception shall be submitted
36 to the department of human services within 30 days of
37 receipt of notification by the nursing facility of the
38 new reimbursement rate. The exception request shall
39 include an explanation of the circumstances and
40 supporting data.
41 h. For the purpose of determining the median
42 applicable to Medicare-certified hospital-based
43 skilled nursing facilities, the department shall treat
44 such facilities as a separate peer group.
45 i. The modified price-based case-mix reimbursement
46 rate for state-operated nursing facilities and special
47 population nursing facilities shall be the average
48 allowable per diem costs, adjusted for inflation,
49 based on the most current financial and statistical
50 report. Special population nursing facilities
Page 4
1 enrolled on or after June 1, 1993, shall have a rate
2 ceiling equal to the rate ceiling for Medicare-
3 certified hospital-based nursing facilities.
4 4. a. ACCOUNTABILITY MEASURES.
5 It is the intent of the general assembly that the
6 department of human services initiate a system to
7 measure a variety of elements to determine a nursing
8 facility's capacity to provide quality of life and
9 appropriate access to medical assistance program
10 beneficiaries in a cost-effective manner. Beginning
11 July 1, 2001, the department shall implement a process
12 to collect data for these measurements and shall
13 develop procedures to increase nursing facility
14 reimbursements based upon a nursing facility's
15 achievement of multiple favorable outcomes as
16 determined by these measurements. Any increased
17 reimbursement shall not exceed 3 percent of the
18 calculation of the modified price-based case-mix
19 reimbursement median. The increased reimbursement
20 shall be included in the calculation of nursing
21 facility modified price-based payment rates beginning
22 July 1, 2002, with the exception of Medicare-certified

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