AN ACT relating to disproportionate share hospital payments and making an appropriation therefor. Amend KRS 205.639 to establish definitions; amend KRS 205.640 to specify the process for submitting Medicaid disproportionate share hospital (DSH) surveys; specify the process by which initial and final DSH payments are calculated; provide for the distribution of DSH funds; require the Department for Medicaid Services and managed care organizations to provide hospitals with a paid claims list within 90 days of the end of each hospital's fiscal year; create a new section of KRS Chapter 205 to establish a penalty for managed care organizations that do not provide hospitals with a paid claims list by the required deadline; create a new section of KRS Chapter 205 to permit the Department for Medicaid Services to promulgate administrative regulations to comply with changes in federal law regarding DSH payments and to make DSH payments contingent upon receipt of federal funds, the availability of state funds, and approval of the Centers for Medicare and Medicaid; repeal KRS 205.641; APPROPRIATION.