Rural Ky. hospitals to receive $383M from years-long Medicaid dispute

Rural Ky. hospitals to receive $383M from years-long Medicaid dispute
Gov. Beshear said checks will be issued to the hospitals as early as next week. (Source: Pixabay)

KENTUCKY (KFVS) - A 13-year-old dispute regarding Medicaid funding rates in Kentucky has been settled.

Governor Andy Beshear and U.S. Senate Majority Leader Mitch McConnell announced on Wednesday, June 24, $383 million in state and federal dollars will be distributed to 54 rural hospitals.

Gov. Beshear said checks will be issued to the hospitals as early as next week.

The following Heartland hospitals will be receiving a portion of the settlement:

  • Baptist Health Paducah $15,215,000
  • Crittenden County Hospital, Inc. $620,479
  • Jackson Purchase Medical Center $3,163, 917
  • Lourdes Hospital $8,915,262
  • Murray Calloway County Hospital $4,006,044

The funds will come from a settlement with the federal Centers for Medicare & Medicaid Services (CMS) and the state’s liability.

Beshear said an estimated $425 million was budgeted for the state’s liability, but it was negotiated to $93.9 million.

The settlement negotiated by Gov. Beshear, with support from Sen. McConnell.

“In the midst of the coronavirus crisis, I’m proud to work with the Trump Administration and Gov. Beshear to deliver urgently needed resources for more than 50 of Kentucky’s rural hospitals,” said Senate Majority Leader McConnell.

This litigation began with an administrative action in 2007 and then the lawsuit in 2013, all involving the rate setting methodology used for acute care hospitals for 2007-2015.

The hospitals claimed the methodology used by Kentucky Medicaid was invalid, and the Franklin Circuit Court and the Kentucky Court of Appeals agreed.

The case is pending before the Kentucky Supreme Court.

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