Okla. Stat. tit. 63, § 63-5027: Health care district

A. As used in this section “health care district” means a

subordinate health care entity that better promotes efficient

administration of health care service delivery for counties with a

population of one hundred thousand (100,000) or less to eligible

persons in this state.

B. A locally designated health care district shall:

1. Coordinate the delivery of health care services in local

jurisdictions such as municipalities and counties; provided,

however, jurisdictions containing multiple areas shall be contiguous

and shall possess commonality as it relates to need;

2. Be authorized to adjust Medicaid provider rates above the

state minimum established by the Oklahoma Health Care Authority;

3. Be authorized to contract with employer-sponsored health

plans or private health plans to provide services to Medicaid and

indigent beneficiaries; and

4. Be authorized to expand health care services or health care

providers within health care districts.

C. Health care districts may be established by local

communities wherein locally generated tax dollars are received for

the benefit of local hospitals or other local health care services.

The districts shall have the same boundaries as the area over which

the locally assessed tax is levied.

D. Health care districts may be established by the governing

boards of the hospitals located within the area over which the

locally assessed tax for the benefit of the local hospital or other

local health care service is levied. The governing board of the

hospital shall be the governing board of the local health care

district.

E. 1. Each health care district may certify to the Oklahoma

Health Care Authority the amount of funds generated by tax

assessment within the health care district for the benefit of the

local hospital or other local health care services.

2. The Authority shall submit such information to the Centers

for Medicare and Medicaid Services (CMS) for the purpose of applying

for federal matching funds. The Authority shall submit any

necessary applications for waivers to accomplish the provisions of

this act.

F. The Oklahoma Health Care Authority Board is hereby directed

to promulgate rules to enact the provisions of this section. The

rules shall, at a minimum, address:

1. Internal establishment of local health care district

accounts within the Authority including, but not limited to,

procedures for remitting funds out of such accounts back to the

local health care district; and

2. Methods for certifying funds for each local health care

district and for reporting such amounts to the Centers for Medicare

and Medicaid Services for federal matching purposes. The revenue

for each health care district account shall consist of federal

matching dollars received for such certified funds.

The Oklahoma Health Care Authority shall apply for federal

matching funds based on the amount of funds certified by the local

health care district for such purposes. The Authority shall not

reduce the amount of disbursements otherwise due to a health care

district based on the health care district’s receipt of the local

area dedicated monies and any attributable federal matching funds;

and

3. Procedures for continuing the Authority’s claims payment

function, pursuant to a draw-down process for funds, for each

Medicaid service within the local health care district.