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As used in this chapter:
(1) "Base year" means, for the purpose of calculating a disproportionate share payment for
any fiscal year ending after September 30, 2024 2025 , the period from October 1, 2022 2023 ,
through September 30, 2023 2024 , and for any fiscal year ending after September 30, 2025 2026 ,
the period from October 1, 2023 2024 , through September 30, 2024 2025 .
(2) "Medicaid inpatient utilization rate for a hospital" means a fraction (expressed as a
percentage), the numerator of which is the hospital's number of inpatient days during the base year
attributable to patients who were eligible for medical assistance during the base year and the
denominator of which is the total number of the hospital's inpatient days in the base year.
(3) "Participating hospital" means any nonpsychiatric hospital that:
(i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year
and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to
§ 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless
of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23-
17-6(b) (change in effective control), that provides acute inpatient and/or outpatient care to persons
who require definitive diagnosis and treatment for injury, illness, disabilities, or pregnancy.
Notwithstanding the preceding language, the negotiated Medicaid managed care payment rates for
a court-approved purchaser that acquires a hospital through receivership, special mastership, or
other similar state insolvency proceedings (which court-approved purchaser is issued a hospital
license after January 1, 2013), shall be based upon the newly negotiated rates between the court-
approved purchaser and the health plan, and the rates shall be effective as of the date that the court-
approved purchaser and the health plan execute the initial agreement containing the newly
negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient
hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall
thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1
following the completion of the first full year of the court-approved purchaser's initial Medicaid
managed care contract;
(ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%)
during the base year; and
(iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during
the payment year.
(4) "Uncompensated-care costs" means, as to any hospital, the sum of: (i) The cost incurred
by the hospital during the base year for inpatient or outpatient services attributable to charity care
(free care and bad debts) for which the patient has no health insurance or other third-party coverage
less payments, if any, received directly from such patients; (ii) The cost incurred by the hospital
during the base year for inpatient or outpatient services attributable to Medicaid beneficiaries less
any Medicaid reimbursement received therefor; and (iii) the sum of subsections (4)(i) and (4)(ii) of
this section shall be offset by the estimated hospital's commercial equivalent rates state directed
payment for the current SFY in which the disproportionate share hospital (DSH) payment is made.
The sum of subsections (4)(i), (4)(ii), and (4)(iii) of this section shall be multiplied by the
uncompensated care index.
(5) "Uncompensated-care index" means the annual percentage increase for hospitals
established pursuant to § 27-19-14 [repealed] for each year after the base year, up to and including
the payment year; provided, however, that the uncompensated-care index for the payment year
ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%),
and that the uncompensated-care index for the payment year ending September 30, 2008, shall be
deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care
index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight
hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending
19 September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September
20 30, 2014, September 30, 2015, September 30, 2016, September 30, 2017, September 30, 2018,
21 September 30, 2019, September 30, 2020, September 30, 2021, September 30, 2022, September
30, 2023, September 30, 2024, September 30, 2025, and September 30, 2026, and September 30,
2027 shall be deemed to be five and thirty hundredths percent (5.30%).