OAR 410-165-0100
Participation and Incentive Payments


(1) To qualify for an incentive payment, an eligible provider shall meet the Program eligibility criteria and participation requirements for each year the eligible provider applies:
(a) An eligible provider shall meet the eligibility criteria for each program year of:
(A) Type of eligible provider;
(B) Patient volume minimum; and
(C) Certified EHR technology adoption, implementation, or upgrade requirements in the first year of participation and meaningful use requirements in subsequent years, or meaningful use requirements in all years of participation.
(b) An eligible provider must meet the participation requirements for each program year including:
(A) Be an enrolled Medicaid provider with the Division;
(B) Maintain current provider information with the Division;
(C) Possess an active professional license and comply with all licensing statutes and regulations within the state where the eligible provider practices;
(D) Have an active Provider Web Portal account;
(E) Ensure the designated payee is able to receive electronic funds transfer from the Authority; and
(F) Comply with all applicable Oregon Administrative Rules, including chapter 410, division 120, and chapter 943, division 120.
(c) An eligible professional may reassign the entire amount of the incentive payment to:
(A) The eligible professional’s employer with whom the eligible professional has a contractual arrangement allowing the employer to bill and receive payments for the eligible professional’s covered professional services;
(B) An entity with which the eligible professional has a contractual arrangement allowing the entity to bill and receive payments for the eligible professional’s covered professional services; or
(C) An entity promoting the adoption of certified EHR technology.
(2) An eligible professional shall follow the Program participation conditions and requirements. The eligible professional shall:
(a) Receive an incentive payment from only one state for a program year;
(b) Only receive an incentive payment from either Medicare or Medicaid for a program year, but not both;
(c) Not receive more than the maximum incentive amount of $63,750 over a six-year period or the maximum incentive of $42,500 over a six-year period if the eligible professional qualifies as a pediatrician who meets the 20 percent patient volume minimum and less than the 30 percent patient volume;
(d) Participate in the Program:
(A) Starting as early as calendar year (CY) 2011, but no later than CY 2016;
(B) Ending no later than CY 2021;
(C) For a maximum of six years; and
(D) On a consecutive or non-consecutive annual basis.
(e) Be allowed to switch between the Medicare and Medicaid Programs only one time after receiving at least one incentive payment and only for a program year before 2015.
(3) The Authority shall disburse payments to the eligible professional following verification of eligibility for the program year:
(a) An eligible professional is paid an incentive amount for the corresponding program year for each year of qualified participation in the Program;
(b) The payment structure is as follows for:
(A) An eligible professional qualifying with 30 percent minimum patient volume:
(i) The first payment incentive amount is $21,250; and
(ii) The second, third, fourth, fifth, or sixth payment incentive amount is $8,500; or
(B) An eligible pediatrician qualifying with 20 percent but less than 30 percent minimum patient volume:
(i) The first payment incentive amount is $14,167; and
(ii) The second, third, fourth, or fifth payment incentive amount is $5,667;
(iii) The sixth payment incentive amount is $5,665.
(c) The deadline for the Authority to disburse payments to eligible professionals is December 31, 2021.
(4) An eligible hospital shall follow the Medicaid EHR Incentive Program participation conditions including requirements that the eligible hospital:
(a) Receives a Medicaid EHR incentive payment from only one state for a program year;
(b) May participate in both the Medicare and Medicaid EHR Incentive Programs only if the eligible hospital meets all eligibility criteria for the program year for both programs;
(c) Participates in the Program:
(A) Starting as early as program year 2011 but no later than program year 2016;
(B) Ending no later than program year 2021;
(C) For a maximum of three years;
(D) On a consecutive or non-consecutive annual basis for program years prior to program year 2016; and
(E) On a consecutive annual basis for program years starting in program year 2016.
(d) A multi-site hospital with one CMS CCN is considered one hospital for purposes of calculating payment.
(5) The Authority shall disburse payments to the eligible hospital following verification of eligibility for the program year. An eligible hospital is paid the aggregate incentive amount over three years of qualified participation in the Program:
(a) The payment structure as listed in Table 165-0100-1 is as follows:
(A) The first payment incentive amount is equal to 50 percent of the aggregate EHR amount;
(B) The second payment incentive amount is equal to 40 percent of the aggregate EHR amount; and
(C) The third payment incentive amount is equal to 10 percent of the aggregate EHR amount.
(b) The aggregate EHR amount is calculated as the product of the “overall EHR amount” times the “Medicaid Share” as listed in Table 165-0100-2. The aggregate EHR amount is calculated once for the first-year participation and then paid over three years according to the payment schedule:
(A) The overall EHR amount for an eligible hospital is based upon a theoretical four years of payment the hospital would receive and is the sum of the following calculation performed for each of such four years. For each year, the overall EHR amount is the product of the initial amount, the Medicare share, and the transition factor:
(i) The initial amount as listed in Table 165-0100-3 is equal to the sum of the base amount, which is set at $2,000,000 for each of the theoretical four years plus the discharge-related amount that is calculated for each of the theoretical four years:
(I) For initial amounts calculated in program years 2011 or 2012, the discharge-related amount is $200 per discharge for the 1,150th through the 23,000th discharge, based upon the total discharges for the eligible hospital (regardless of source of payment) from the hospital fiscal year that ends during the federal fiscal year (FFY) prior to the FFY year that serves as the first payment year. No discharge-related amount is added for discharges prior to the 1,150th or any discharges after the 23,000th;
(II) For initial amounts calculated in program year 2013 or later, the discharge-related amount is $200 per discharge for the 1,150th through the 23,000th discharge, based upon the total discharges for the eligible hospital (regardless of source of payment) from the hospital fiscal year that ends before the FFY that serves as the first payment year. No discharge-related amount is added for discharges prior to the 1,150th or any discharges after the 23,000th;
(III) For purposes of calculating the discharge-related amount for the last three of the theoretical four years of payment, discharges are assumed to increase each year by the hospital’s average annual rate of growth; negative rates of growth shall also be applied. Average annual rate of growth is calculated as the average of the annual rate of growth in total discharges for the most recent three years for which data are available per year.
(ii) The Medicare share that equals 1;
(iii) The transition factor that equals:
(I) 1 for the first of the theoretical four years;
(II) 0.75 for the second of the theoretical four years;
(III) 0.5 for the third of the theoretical four years; and
(IV) 0.25 for the fourth of the theoretical four years.
(B) The Medicaid share for an eligible hospital is equal to a fraction:
(i) The numerator for the FFY and with respect to the eligible hospital is the sum of:
(I) The estimated number of inpatient-bed-days that are attributable to Medicaid individuals; and
(II) The estimated number of inpatient-bed-days that are attributable to individuals who are enrolled in a managed or coordinated care organization, a pre-paid inpatient health plan, or a pre-paid ambulatory health plan administered under 42 CFR Part 438.
(ii) The denominator is the product of:
(I) The estimated total number of inpatient-bed-days with respect to the eligible hospital during such period; and
(II) The estimated total amount of the eligible hospital’s charges during such period, not including any charges that are attributable to charity care, divided by the estimated total amount of the hospital’s charges during such period.
(iii) In computing inpatient-bed-days for the Medicaid share, an eligible hospital may not include either of the following:
(I) Estimated inpatient-bed-days attributable to individuals that may be made under Medicare Part A; or
(II) Inpatient-bed-days attributable to individuals who are enrolled with a Medicare Advantage organization under Medicare Part C.
(iv) If an eligible hospital’s charity care data necessary to calculate the portion of the formula for the Medicaid share are not available, the eligible hospital’s data on uncompensated care may be used to determine an appropriate proxy for charity care but shall include a downward adjustment to eliminate bad debt from uncompensated care data if bad debt is not otherwise differentiated from uncompensated care. Auditable data sources shall be used; and
(v) If an eligible hospital’s data necessary to determine the inpatient bed-days attributable to Medicaid managed care patients are not available, that amount is deemed to equal 0. In the absence of an eligible hospital’s data necessary to compute the percentage of inpatient bed days that are not charity care as described under subparagraph (B)(ii)(II) in this section, that amount is deemed to be 1.
(6) The aggregate EHR amount is determined by the state from which the eligible hospital receives its first incentive payment. If a hospital receives incentive payments from other states in subsequent years, total incentive payments received over all payment years of the program can be no greater than the aggregate EHR amount calculated by the state from which the eligible hospital received its first incentive payment.
(7) Table 165-0100-1. [Table not included. See NOTE.]
(8) Table 165-0100-2. [Table not included. See NOTE.]
(9) Table 165-0100-3. [Table not included. See NOTE.]
[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]

Source: Rule 410-165-0100 — Participation and Incentive Payments, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=410-165-0100.

Last Updated

Jun. 8, 2021

Rule 410-165-0100’s source at or​.us