KRS 205.6326: Review of Medicaid reimbursement systems -- Implementation of a

standardized patient assessment tool and consistent quality-of-care mandates.

The Cabinet for Health and Family Services shall review all medical assistance

reimbursement systems for app ropriateness and cost -effectiveness. The review shall

include:

(1) Review of cost -based reimbursement policies for hospitals and nursing homes to

determine the effectiveness and appropriateness of alternate systems. Consideration

shall be given to the use of modified diagnostic -related groups and resource

utilization groups systems, using capitated payment methods; and

(2) Review of reimbursement rates for physicians to determine whether savings or cost

containment would be better achieved through using a relative-based resource value

scale system, a capitated payment method, or other alternative methods of

reimbursement; and

(3) For all Medicaid-covered long-term-care services, implementation of a standardized

patient assessment tool and consistent quality-of-care mandates.