fiscal officers training manual - New York State Conference of Local ...

c. When a provider’s CSP revenue is less than their threshold for a fiscal year, and a rate amendmentwill not ensure maintenance of funding, the underachievement amount will be paid to the providerthrough a state aid payment (see Part 588.14(g)).d. NOTE: If an overpayment occurs, the recovery process can be a one-time reduction to the firstMedicaid payment processed and paid after OMH notifies DOH, a check payable to NYSDOH for thefull amount or a series of 10% reductions (or larger if you request a percentage increase) of futureMedicaid checks. Keep in mind that interest will be charge equal to prime-plus 2% on any unpaidbalance beginning 90 days after the date that DOH is notified by OMH.4. CSP Reporting and Claiming:a. CSP Medicaid accounting for Article 31 providers is conducted on a cash basis while CSP Medicaidaccounting for Article 28 general hospitals is on an accrual basis. OMH payment reports fully explainthe accounting rules supporting both methodologies.b. CSP Medicaid accounting also results in determination of the amount of CSP Medicaid paid for theyear, and amounts in excess of the threshold, that will be recovered through the MMIS. If the CSPMedicaid amount paid through MMIS in a local fiscal year falls below the CSP Medicaid threshold,OMH will either recalculate the CSP rate, using actual paid claims for the specific rate period, or willmake a State Aid payment in an amount equal to the CSP Medicaid revenue shortfall.c. Additional detail and examples of CSP Reporting and Claiming, as well as a list of CSP eligibleprograms is available at the first link below in Resources.d. Providers are required to budget and claim CSP Medicaid on the Consolidated Budget Report (CBR),the Consolidated Claiming Report (CCR), and the Consolidated Fiscal Report (CFR) -- consistentwith Appendix DD of the CBR and CFR manuals. See link to Appendix DD below in Resources.5. Closure of a Program:a. The LGU should contact the Field Office and COPS/CSP Rate Setting Unit prior to the closure of aprogram that generates a CSP rate add-on or is funded by CSP. Where possible, an alternate eligibleprogram can be utilized. Such actions require both OMH and the Division of Budget (DOB) approval.b. Closure of a program with a CSP rate add-oni. When a Medicaid-eligible program with a CSP rate add-on closes but the program thatreceives the CSP funding continues, the LGU should request that the rate add-on berecalculated and “attached” to another CSP eligible Medicaid Program.ii. If the provider does not operate another eligible program, the LGU should request that theCSP funding be restored as State Aid. In such cases the State Aid is restored to the State AidApproval Letter at 100%.c. Closure of a program that receives CSP fundingi. When a CSP funded program closes or the LGU terminates funding for a CSP program, theLGU can request that an alternate program(s), eligible to receive CSP funding, be awardedthe CSP funding from the closed program.1. The LGU should identify the CSP eligible program(s) to receive the funding from theclosing program and request that the COPS/CSP Unit estimate the Total Fundingthat is eligible to be transferred.2. The OMH will verify that there is sufficient room under the CSP Rate Cap to allow thetransferring of funding.ii. Alternatively, the LGU may allocate the CSP Medicaid funds to a DSH-eligible article 28provider.1. The LGU should identify the DSH eligible program(s) to receive the funding from theclosing program and request that the COPS/CSP Unit estimate the Total Fundingthat is eligible to be transferred.2. The OMH will verify that there is sufficient room under the DSH Cap to allow theaddition of funding.3. Upon OMH and DOB approval of the request, an amended DSH MOU will be issuedto the LGU reflecting the increased funding. The LGU must approve the revisedMOU.iii. If there is no ability to “move” the funding associated with the closed program to another CSPeligible or DSH eligible provider, funding will be restored as State Aid. In such cases, theCSP regulations only allow the OMH to restore an amount equal to the State Share ofMedicaid (50%) to the LGU as State Aid. This will result in the loss of Federal funds that hadpreviously supported the services.