PDFWAC 182-550-3600

Diagnosis-related group (DRG) payment—Hospital transfers.

(1) The rules in this section apply when an eligible client transfers from an acute care hospital or distinct unit to any of the following:
(a) Another acute care hospital or distinct unit;
(b) A skilled nursing facility (SNF);
(c) An intermediate care facility (ICF);
(d) Home care under the medicaid agency's home health program;
(e) A long-term acute care facility (LTAC);
(f) Hospice (facility-based or in the client's home);
(g) A hospital-based, medicare-approved swing bed, or another distinct unit such as a rehabilitation or psychiatric unit (see WAC 182-550-3000); or
(h) A nursing facility certified under medicaid but not medicare.
(2) The medicaid agency pays a transferring hospital the lesser of:
(a) The appropriate diagnosis-related group (DRG) payment; or
(b) The prorated DRG payment, which the agency calculates by:
(i) Using the average length of stay (ALOS) for the assigned DRG:
(A) The agency uses the 3M national average length of stay for paying inpatient claims.
(B) The agency publishes ALOS values on its website;
(ii) Dividing the hospital's allowed payment amount for the assigned DRG by the ALOS in (b)(i) of this subsection;
(iii) Determining the client length of stay as all medically necessary days at the transferring hospital, plus one day; and
(iv) Multiplying the number in (b)(ii) of this subsection by the length of stay determined in (b)(iii) of this subsection.
(3) The agency applies the outlier payment method if a transfer case qualifies as a high outlier. To qualify for a high outlier, the costs (ratio of cost-to-charges multiplied by covered allowed charges) for the transfer must exceed the outlier threshold. The threshold is the prorated DRG amount plus forty thousand dollars. The prorated amount is the lesser of:
(a) The per diem DRG allowed amount (hospital's rate multiplied by relative weight for the DRG code assigned to the claim by the agency) divided by the average length of stay (for the DRG code assigned by the agency for the claim) multiplied by the client's length of stay plus one day; or
(b) The total DRG payment allowed amount calculation for the claim.
(4) The agency does not pay a transferring hospital for a nonemergency case when the transfer is to another acute care hospital.
(5) The agency pays the full DRG payment to the discharging hospital for a discharge to home or self-care. This is the agency's maximum payment to a discharging hospital.
(6) The agency pays an intervening hospital a per diem payment based on the method described in subsection (2) of this section.
(7) The transfer payment policy described in this section does not apply to claims grouped into DRG classifications the agency pays based on the per diem, case rate, or ratio of costs-to-charges (RCC) payment methods.
(8) The agency applies the following to the payment for each claim:
(a) All applicable adjustments for client responsibility;
(b) Any third-party liability;
(c) Medicare payments; and
(d) Any other adjustments as determined by the agency.
[Statutory Authority: RCW 41.05.021 and 41.05.160. WSR 18-12-043, § 182-550-3600, filed 5/30/18, effective 7/1/18. Statutory Authority: RCW 41.05.021 and chapter 74.60 RCW. WSR 14-12-047, § 182-550-3600, filed 5/29/14, effective 7/1/14. WSR 11-14-075, recodified as § 182-550-3600, filed 6/30/11, effective 7/1/11. Statutory Authority: RCW 74.04.050, 74.04.057, 74.08.090, 74.09.500, and 2009-11 Omnibus Operating Budget (ESHB 1244). WSR 09-12-062, § 388-550-3600, filed 5/28/09, effective 7/1/09. Statutory Authority: RCW 74.08.090, 74.09.500 and 2005 c 518. WSR 07-14-051, § 388-550-3600, filed 6/28/07, effective 8/1/07. Statutory Authority: RCW 74.08.090 and 42 U.S.C. 1395x(v), 42 C.F.R. 447.271, .11303, and .2652. WSR 01-16-142, § 388-550-3600, filed 7/31/01, effective 8/31/01. Statutory Authority: RCW 74.08.090, 74.09.730, 74.04.050, 70.01.010, 74.09.200, [74.09.]500, [74.09.]530 and 43.20B.020. WSR 98-01-124, § 388-550-3600, filed 12/18/97, effective 1/18/98.]