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DHS rule would let rehabilitative hospitals open psychiatric units and bill Arkansas Medicaid

Legislative committee · February 4, 2026
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Summary

Department of Human Services staff told committee members that a proposed rule would permit rehabilitative hospitals to open psychiatric acute units and receive Medicaid reimbursement; presenters said one hospital in Jefferson County is already providing such services but was previously ineligible for Medicaid payment.

Paula Stone, director of the Office of Substance Abuse and Mental Health at the Department of Human Services, told the committee the proposed rule would allow rehabilitative hospitals to open psychiatric units, provide psychiatric acute services and be reimbursed by Medicaid.

"This rule allows rehabilitative hospitals to open psychiatric units, provide psychiatric acute services and be reimbursed by Medicaid," Stone said. She told members DHS had not previously had the ability to reimburse those services and noted one rehabilitative hospital in Jefferson County is currently providing the service without Medicaid payment.

Committee members raised no questions, and the chair stated the rule "stands reviewed" without objection. Supporters of the change said the rule fills a gap in coverage that had left at least one provider unable to claim Medicaid reimbursement for psychiatric acute services.

The committee reviewed the rule as presented; no vote or amendment was recorded in the transcript and the item proceeded to the next rule.