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$32 million to safety net hospitals

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Illinois

* This takes away another major budgetary pressure point…

Working to protect hospitals at the greatest financial risk during the state budget impasse, the Department of Healthcare and Family Services today is announcing a financial action plan. Through a package of advance payments and agreements, HFS is providing funding assistance to the most vulnerable hospitals.

Using Fiscal Year 2015 lapse period funding authority, the department recently agreed to provide $32 million in advances on expected claims to eight “safety net” hospitals. These institutions are receiving an amount equivalent to what they are expected to bill over a two-month period. They will be required to repay the advances in the future.

“Unfortunately, healthcare providers, patients, and others who depend on state services are the ones who are caught in the middle of the current budget impasse,” said John Hoffman, director of communications for HFS. “The department is doing what it can, but it is up to the General Assembly to pass a balanced budget so hospitals can keep their doors open for our most vulnerable citizens.”

The following hospitals are receiving advances. These are among those most dependent on Medicaid resources for their operations.

St Anthony Hospital-Chicago
Mount Sinai Hospital
Norwegian American Hospital
La Rabida Children’s Hospital
Loretto Hospital
Jackson Park Hospital and Medical Center
South Shore Hospital
St Bernard Hospital

In addition, HFS has agreed to suspend a repayment plan with Roseland Community Hospital in Chicago. Roseland owes the state $3.4 million in assessments, a tax that hospitals are required to pay, and had agreed to make monthly repayments. That requirement is now being delayed pending a budget agreement for FY16.

“We understand that this action plan is no guarantee for any institution, but we are doing everything within our authority to help areas with the most need,” said Hoffman. “Hospitals and other service providers need budgetary certainty so that they can continue to serve our at-risk communities.”

posted by Rich Miller
Friday, Jul 17, 15 @ 4:44 pm

Comments

Under Illinois law, I believe it is illegal for HFS to use FY 2015 money for FY 2016 expenses.

Moreover, HFS has no authority to act as a lender.

Comment by Juvenal Friday, Jul 17, 15 @ 4:50 pm
Juvenal, HFS ends up having to give advances to the Safety Nets pretty frequently. And so much of Medicaid funding is based on static payments to providers, instead of actually seeing patients (where we basically just hand over money) that it can be argued that it is not for FY ‘16 services (since it is not really for any service) that I doubt the Comptroller would raise much of a fuss.

And besides, she is so clearly in the tank, she has no interest in actually being a check on what the Governor wants to do with the budget.

What I find curious is that the Governor had proposed eliminating many and curtailing some more of those static payments. So he is pretty clearly backing down from his own Medicaid cuts now.

Comment by Juice Friday, Jul 17, 15 @ 4:55 pm
===What I find curious is that the Governor had proposed eliminating many and curtailing some more of those static payments. So he is pretty clearly backing down from his own Medicaid cuts now. ===

Another U-Turn.

Comment by Rich Miller Friday, Jul 17, 15 @ 4:58 pm
Budget? We don’t need no stinkin’ budget!

Comment by Arthur Andersen Friday, Jul 17, 15 @ 5:02 pm
You mean they get paid regardless of whether they see patients or not?

Comment by dr. reason a. goodwin Friday, Jul 17, 15 @ 5:04 pm
Blink.

Next!

Who’s the next to bring the heat and get paid?

Comment by Wordslinger Friday, Jul 17, 15 @ 5:08 pm
I’m getting dizzy from all these U-turns.

Comment by Norseman Friday, Jul 17, 15 @ 5:11 pm
– Tney will be required to repay the advances in the future.–

Huh? This is what they’d be getting if an FY16 budget was in place, right? It’s FY16. Why would they pay it back?

The state is terming it an “advance” to keep it within lapse-spending authority. But its business-as-usual for the hospitals. This isn’t “extra money.”

Comment by Wordslinger Friday, Jul 17, 15 @ 5:14 pm
Is this guy the new Oprah? “You’re still going to get paid! You’re still going to get paid! Everybody is still going to get paaaiiiiid!!!”

Comment by Juice Friday, Jul 17, 15 @ 5:18 pm
Bruce Rauner: “I am going to shutdown the government to help the people of Illinois, but things are going to operate like normal and everyone will get paid because I can’t handle the repercussions of my own actions”

Comment by Xavier Woods Tuesday, Jul 21, 15 @ 8:22 am