What expenditures may be claimed by a political subdivision that has sold its public hospital to a private company?
Note the following provision in Title 25 TAC Chapter 102 for the distribution of tobacco settlement proceeds to political subdivisions: “(1) When a political subdivision has sold or leased its public health care facility(s) and accepted an agreement from the new owner or lessee of the facility(s) to provide indigent health care services, the political subdivision is receiving contracted services in lieu of cash as consideration for the sale or lease of the facility(s). In submitting its expenditure statement for the distribution, the political subdivision may claim the value of the health care services for indigent residents of the political subdivision performed by the purchaser or lessee of the facility as if they had been reimbursed using either the Medicaid Diagnosis Related Group (DRG) for the individual patients or the Medicaid Interim rate for the facility. (2) When a political subdivision has sold or leased its public health care facility(s) and accepted profits or payments in
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