Amends the Supplemental payments for inpatient hospitals services.

Modifies the methods and standards for nursing facility payments.

Implements legislative funding for nursing facility reimbursement, Updates references to reflect the current fiscal year, Updates the current Statewide median price and incorporates the funding level for the direct care wage component of the rate and provides for other minor clarifications.

Updates the State plan to provide for a three percent inflationary rate increase; revises the base year for historical costs from June 30 2006 to June 30 2010; updates the nursing facility limit rates; and, removes obsolete language.

Refines nursing facility mandatory evacuation payments as a result of a disaster.

Updates the reimbursement methodology for supplemental payments to Intermediate Care Facilities.

Updates the reimbursement methodology for Nursing Facilities by providing for a three percent inflationary increase.

Updates the direct graduate medical education reimbursement methodology.

Modifies the reimbursement methodology for inpatient hospital services.

Denies additional Medicaid Payments for cost incurred for potentially preventable conditions in the inpatient hospital setting and in non-institutional settings.