Kentucky hospitals in line for $1 billion in additional funding

(The Center Square) – Thanks to a decision by the U.S. Centers for Medicare and Medicaid Services, Kentucky’s hospitals will soon receive up to $1 billion in annual funding.

Last week, CMS approved a new direct payment initiative from the Kentucky Cabinet for Health and Family Services (CHFS) that provides more money for inpatient Medicaid services.

“This approval signals support of payment reforms designed to increase access to care and promote quality services for Medicaid members,” said Lisa Lee, commissioner for the state Department of Medicaid Services.

There are still approvals needed from the state General Assembly and at the federal level, but if those happen, the increased payments could start in March.

State Rep. Brandon Reed, R-Hodgenville, filed House Bill 183 on Jan. 6 to address the issue.

According to a statement from Gov. Andy Beshear’s office, the additional funding will give the state’s 112 hospitals a solid financial foundation and improve the quality of care for the 1.6 million Kentuckians on Medicaid.

That figure represents more than a third of the state’s population.

“Health care is a basic human right, and our people deserve the highest-quality care possible,” said Beshear. “Our hospitals and medical professionals are the pillars holding up our communities during this unprecedented time. Our hospitals need additional support to ensure they can continue to meet the needs of Kentuckians and our health care heroes and sheroes deserve our sincere thanks for standing strong on the frontlines helping to save lives.”

To qualify for the new funding, hospitals will need to meet higher quality of care standards. CHFS is working with the Kentucky Hospital Association to draft those.

KHA President and CEO Nancy Galvagni said the association’s members are ecstatic with the federal approval.

“It will mean the difference between keeping the lights on rather than locking the doors for a number of our hospitals,” she said.

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