A BILL TO BE ENTITLED
AN ACT TO DIRECT THE Department of Health and Human Services, Division of Medical Assistance, TO PAY CERTAIN FACILITIES THE RATE PAID FOR SHORT‑TERM ACUTE CARE  HOSPITALS.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  The Department of Health and Human Services, Division of Medical Assistance, shall develop a policy that pays long‑term acute care hospitals serving Medicaid patients at the rate paid to short‑term acute care hospitals under Medicaid.  The Department shall apply this rate to those hospitals that are:
(1)	Licensed as acute care hospitals,
(2)	Certified as long‑term care hospitals under Medicare, 
(3)	Accredited by JCAHO, and
(4)	Serving a case‑mix index that is the same or higher than short‑term acute care hospitals under Medicaid.
SECTION 1.(b)  The Department shall take steps to obtain the necessary approval from the Centers for Medicare and Medicaid (CMS) to apply the rate provided for under subsection (a) of this section.
SECTION 1.(c)  In the event Medicaid prohibits application of the higher rate required under subsection (a) of this section, the State shall pay the full cost of the higher rate.
SECTION 2.  This act becomes effective July 1, 2008.