1. DRG Implementation Overview
July 13, 2012

2. Legislative Mandate
General Appropriations Act for 2012 and House Bill 5301 mandate implementation of DRG system of payment for hospitals.
Conversion to DRG system required by July, 2013 unless delayed by Budget Commission.
Funding of $2.1 million was provided for agency to contract for the development of the DRG methodology. 1

3. Selected Vendor MGT of America, Inc. with Navigant as a partner.
Team members have experience with similar systems in Illinois, Indiana, Kentucky, Nebraska, Washington and Arizona.
MGT is a Tallahassee based company with extensive consulting experience with Florida and other state governments. 2

4. General Timeframes
May 2012 – Project Initiation, conceptual design and evaluation
June and July 2012 – Prepare Available Options Report, compile data
August 2012 – Data analysis, public input, complete draft options report.
September 2012 – Determine weights, data analysis and finalize options report.
October Calculate initial rates and payments
November 2012 – Draft DRG Implementation Plan
December 2012 – Final DRG implementation Plan
December – March 2012 – Develop Process and Policy Revisions Report
July 1, 2013 – Implementation 3

5. Deliverables
Available Options Report – Outlines impacts of DRG options on payment plans, procedures, systems, providers, and describes cost and payment factors and weighting. Recommends best available option.
DRG Conversion Implementation Plan – Identifies SPAs required, other policy changes, IT system changes, rate calculation updates, and a comprehensive analysis of all implementation steps and procedures. 4

6. Deliverables
Process and Policy and Revisions Recommendation Report – Identifies and includes language necessary for implementation including SPAs, Reimbursement plan and handbook amendments, rule changes and CSRs for technology modifications. 5