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Senate passes bill letting Medicaid reimburse outpatient physical therapy in clinical settings
Summary
Senators passed Senate Bill 77 to allow Medicaid to reimburse physical therapy provided in clinical (outpatient) settings rather than only hospital settings, with sponsors saying it may improve access and clinical outcomes.
The Senate Insurance & Commerce Committee passed Senate Bill 77 on a voice vote after sponsors and witnesses described it as a technical change to expand Medicaid reimbursement to clinical (outpatient) physical‑therapy settings.
Senator Mark Johnson, sponsor (Senate District 17), described the bill as allowing Medicaid to reimburse physical therapy in a clinical setting rather than limiting reimbursement to hospital settings. He said the change could improve access for patients who otherwise would travel long distances and might forgo therapy. “If people actually do it right and follow through for therapy, they have a much better clinical outcome,” Johnson said.
Michelle staff distributed an email from Elizabeth Pittman in medical services indicating no fiscal impact was expected; Johnson summarized that Medicaid’s cost per service would not necessarily increase because the bill changes the venue of an existing covered service. He also relayed a department view that improved access could reduce downstream costs such as additional surgeries or drugs.
Beau Renshaw, representing the Arkansas Physical Therapy Association, told the committee outpatient clinics are credentialed with Medicaid and the providers are licensed physical therapists; he said outpatient clinical settings are functionally equivalent to hospital‑based therapy for credentialing purposes.
Senator Irvin moved to pass the bill; the motion was seconded and approved by voice vote. The committee recorded the motion as: “Motion to pass Senate Bill 77,” moved by Senator Irvin, seconded by Senator Boyd; outcome: approved by voice vote.
No fiscal impact was shown in the materials provided to the committee. Supporters framed the change as intended to increase access and adherence to therapy, which they said may reduce subsequent medical costs, while members asked about credentialing and whether DHS would require additional monitoring; witnesses said clinics already are credentialed with Medicaid.
