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TITLE 1ADMINISTRATION
PART 15TEXAS HEALTH AND HUMAN SERVICES COMMISSION
CHAPTER 354MEDICAID HEALTH SERVICES
SUBCHAPTER DTEXAS HEALTHCARE TRANSFORMATION AND QUALITY IMPROVEMENT PROGRAM
DIVISION 7DSRIP PROGRAM DEMONSTRATION YEARS 7-8
RULE §354.1713Category C Requirements for Performers

    (C) If a hospital's or physician practice's denominator for a required measure or numerator for a P4R population-based clinical outcome measure in a selected Measure Bundle for the baseline measurement period or a performance year has insignificant volume, the measure's milestone valuations are adjusted in accordance with subsection (e)(2) of this section.

  (5) Milestone valuation. The measure milestones and corresponding valuations for DY7-8 are as described in subsection (e) of this section.

  (6) MPTs for hospitals.

    (A) The MPT for hospitals, with the exception of those described in subparagraphs (B) and (C) of this paragraph, is calculated as follows:

      (i) First, the hospital's statewide hospital factor (SHF) is equal to (.64 multiplied by (the hospital's Medicaid and uninsured inpatient days divided by the sum of all hospitals' Medicaid and uninsured inpatient days)) plus (.36 multiplied by (the hospital's Medicaid and uninsured outpatient costs divided by the sum of all hospitals' Medicaid and uninsured outpatient costs)).

      (ii) Second, the hospital's statewide hospital ratio (SHR) is equal to (the hospital's DY7 valuation divided by the sum of all hospitals' DY7 valuations) divided by the SHF.

      (iii) Third, the hospital's MPT is determined as follows:

        (I) If the SHR is less than or equal to 3, the MPT is the lesser of:

          (-a-) the DY7 valuation divided by $500,000; or

          (-b-) 75.

        (II) If the SHR is greater than 3 but less than or equal to 10, the MPT is the lesser of:

          (-a-) (the DY7 valuation divided by $500,000 multiplied by (the SHR divided by 3); or

          (-b-) 75.

        (III) If the SHR is greater than 10 and the DY7 valuation is less than or equal to $15 million, the MPT is the lesser of:

          (-a-) (the DY7 valuation divided by $500,000 multiplied by (the SHR divided by 3); or

          (-b-) 40.

        (IV) If the SHR is greater than 10 and the DY7 valuation is greater than $15 million, the MPT is the lesser of:

          (-a-) (the DY7 valuation divided by $500,000 multiplied by (the SHR divided by 3); or

          (-b-) 75.

    (B) If a hospital does not have the data needed for the SHF calculation in paragraph (5)(A)(i) of this subsection, or if a hospital did not participate in DSRIP during the initial demonstration period or DY6, its MPT is the lesser of:

      (i) the hospital's DY7 valuation divided by $500,000; or

      (ii) 75.

    (C) If a hospital has a limited scope of practice, cannot reasonably report on at least half of the required measures in the Measure Bundle(s) appropriate for it based on its scope of practice and community partnerships, and consequently cannot meet its MPT for Measure Bundle selection, the hospital may request HHSC approval for a reduced MPT equal to the sum of the points for all the Measure Bundles for which the hospital could reasonably report on at least half of the required measures in the Measure Bundle. The hospital must submit a request for such approval to HHSC prior to the RHP plan update submission, by a date determined by HHSC. Such a request may be subject to review by the Centers for Medicare & Medicaid Services (CMS). If HHSC and CMS, as appropriate, approve such a request, the hospital's total valuation for DY7 and DY8 may be reduced.

  (7) MPTs for physician practices.

    (A) The MPT for physician practices, with the exception of those described in subparagraph (B) of this paragraph, is the lesser of:

      (i) the physician practice's DY7 valuation divided by $500,000; or

      (ii) 75.

    (B) If a physician practice has a limited scope of practice, cannot reasonably report on at least half of the required measures in the Measure Bundles appropriate for it based on its scope of practice and community partnerships, and consequently cannot meet its MPT for Measure Bundle selection, the physician practice may request HHSC approval for a reduced MPT equal to the sum of the points for all the Measure Bundles for which the physician practice could reasonably report on at least half of the required measures in the Measure Bundle. The physician practice must submit a request for such approval to HHSC prior to the RHP plan update submission, by a date determined by HHSC. Such a request may be subject to review by CMS. If HHSC and CMS, as appropriate, approve such a request, the physician practice's total valuation for DY7 and DY8 may be reduced.

(b) Requirements for community mental health centers (CMHCs).

  (1) Measure selection.

    (A) A CMHC must select measures from the Community Mental Health Center Measure Menu of the Measure Bundle Protocol.

    (B) Each measure is assigned a point value as described in the Measure Bundle Protocol.

    (C) A CMHC is assigned an MPT for measure selection as described in paragraph (3) of this subsection.

    (D) A CMHC must select measures worth enough points to meet its MPT in order to maintain its total valuation for DY7 and DY8. If a CMHC does not select measures worth enough points to meet its MPT, its total DY7 valuation will be reduced proportionately across its RHP Plan Update and Categories B-D funds for DY7, and its total DY8 valuation will be reduced proportionately across its Categories B-D funds for DY8, based on the point values of the measures it selects.

    (E) A CMHC may only select a measure for which its denominator for the baseline measurement period has significant volume.

    (F) A CMHC must select at least two measures.

    (G) A CMHC with a valuation greater than $2,500,000 per DY for DY7-8 must select at least one three-point measure.

  (2) DSRIP-attributed population. A CMHC must determine its DSRIP-attributed population to be applied to its selected measures as specified in the Measure Bundle Protocol.

  (3) Measure valuation. A CMHC may allocate its Category C valuation among its selected measures, provided the following requirements are met:

    (A) The valuation for each selected measure must be greater than or equal to (the Category C valuation divided by the number of selected measures) multiplied by 0.75.

    (B) The valuation for each selected one-point measure must be less than or equal to the Category C valuation divided by the number of selected measures.

    (C) The valuation for each selected three-point or four-point measure must be less than or equal to (the Category C valuation divided by the number of selected measures) multiplied by 1.25.

    (D) If a CMHC allocates to a measure a percentage of its Category C valuation that is one percent greater than the Category C valuation divided by the number of selected measures, the CMHC must provide sufficient justification as specified in the Program Funding and Mechanics Protocol.

  (4) Milestone valuation. The measure milestones and corresponding valuations for DY7-8 are as described in subsection (e) of this section.

  (5) MPTs. A CMHC's MPT is the lesser of:

    (A) the CMHC's DY7 valuation divided by the standard point valuation ($500,000); or

    (B) 40.

(c) Requirements for local health departments (LHDs).

  (1) Measure selection.

    (A) An LHD must select measures from:

      (i) the Local Health Department Measure Menu of the Measure Bundle Protocol; or

      (ii) its DY6 Category 3 pay-for-performance (P4P) measures.

    (B) An LHD may not select the same measure from both the Local Health Department Measure Menu of the Measure Bundle Protocol and its DY6 Category 3 P4P measures.

    (C) If an LHD's DY6 Category 3 P4P measures include multiple versions of the same measure, the LHD may select multiple versions of that measure, but the points associated with that measure will only count once toward the LHD's MPT.

    (D) Each measure on the Local Health Department Measure Menu is assigned a point value as described in the Measure Bundle Protocol.

    (E) Each LHD DY6 Category 3 P4P measure is assigned a point value as described in the Measure Bundle Protocol.

    (F) An LHD is assigned an MPT for measure selection as described in paragraph (4) of this subsection.

    (G) An LHD must select measures worth enough points to meet its MPT in order to maintain its total valuation for DY7 and DY8. If an LHD does not select measures worth enough points to meet its MPT, its total DY7 valuation will be reduced proportionately across its RHP Plan Update and Categories B-D funds for DY7, and its total DY8 valuation will be reduced proportionately across its Categories B-D funds for DY8, based on the point values of the measures it selects.

Cont'd...

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