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Statement by Kenny Boyd President/CEO of MDH Regarding Gov. Pat Quinn's Illinois Budget Address

2/22/2012

The hospital understands the need to respond to the state’s budget challenge.

Medicaid reimbursement rates to provider hospitals have remained unchanged for 17 years while the number of individuals added to the Medicaid roles has increased from 1.3 million in 2000 to 2.7 million in 2012. Cuts to Medicaid reimbursement may force primary care physicians to close their practices thus forcing patients to seek treatment in more expensive health care delivery systems (ie: hospital emergency room).

We will work with legislators to seek solutions to contain Medicaid costs such as enhancing primary case management and other options outlined by the Illinois Hospital Association (IHA) while still providing services to those most in need of health care. Hospitals already contribute $900 million annually through a hospital assessment program that IHA would consider enhancing to help obtain federal Medicaid funds. And we support exploring additional ways to obtain revenue as outlined by IHA.

Cutting the spending for Medicaid does not eliminate or reduce the need for services. Hospitals will still treat patients and as a district hospital MDH sees patients regardless of their ability to pay.

It is clear that a further delay in payments to health care providers is not an answer to the budget problem. As of January state receivables to MDH more than 60 days outstanding were at their highest levels, totaling $5.6 million in Medicaid and $3.8 million in state employee health insurance payments for services.

MDH serves thousands of community residents and contributes significantly to the area’s economy. The IHA recently released a statewide economic impact study noting that hospitals provided $78.8 billion in total economic impact to the Illinois economy. Using the same economic impact formula for direct and indirect impact, MDH contributed an estimated $134,207, 484 to the area’s economic health, according to the IHA report. In the most recent fiscal year MDH payroll was $27,329,763 for an average number of 575 employees.

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