Hospital payment rates modified.

HF 1975 modifies how Minnesota hospitals are paid for inpatient services. It establishes specific payment methods: critical access hospitals use cost-based rates, long-term and rehab hospitals use Medicare-style per diem or distinct part rates, and all other hospitals use diagnosis-related groups (DRGs). The bill rebases payment rates effective November 1, 2014, using 2012 as the base year while maintaining budget neutrality (total payments stay equal to previous levels). It also requires the commissioner to adjust rates for specific services like pediatric, trauma, and rural hospital care to avoid excessive changes (no more than 5% increase/decrease per hospital).