Amend CSHB 1 (house committee printing) as follows:

(1)  In the Article II appropriations to the Health and Human Services Commission, increase the appropriations for the strategies under Goal B, Medicaid (pages II-71 and II-72), from which Medicaid Disproportionate Share Hospital (DSH) payments are made by $41,717,186 for the fiscal year ending August 31, 2016, and by $63,282,814 for the fiscal year ending August 31, 2017.

(2)  In Article II of the bill, add the following appropriately numbered rider after the appropriations to the Health and Human Services Commission (page II-73):

____.  Transitional Medicaid DSH and Related Payments. Out of funds appropriated above to the Health and Human Services Commission in Goal B, Medicaid, the Health and Human Services Commission may expend up to $41,717,186 in general revenue funds in fiscal year 2016 and $63,282,814 in general revenue funds in fiscal year 2017 to stabilize and improve Medicaid hospital payments, including by providing a portion of the non-federal share of Medicaid Disproportionate Share Hospital (DSH) payments or rate adjustments to recognize improvements in quality of patient care, the most appropriate use of care, and patient outcomes.

(3)  In the Article V appropriations to the Department of Public Safety (page V-34), strike Strategy B.1.5, Recruitment, Retention and Support, and strike the appropriation for that strategy for each fiscal year of the biennium.

(4)  Adjust totals and methods of financing appropriately.