Last week we blogged about Texas hospitals facing more Medicaid reimbursement cuts. A major source of concern is a proposed change in how hospitals are paid. Hospitals have their own unique payment rate system. Under a proposed change, hospitals would be reimbursed for Medicaid patients under a statewide average rate. According to the Texas Tribune, the proposed rate change would save millions over two years.
Amanda Engle of the Texas Hospital Association (THA) commented on the proposed change:
“What’s important to recognize is, there are legitimate reasons for cost variations in the system. The payment system needs to be flexible enough to recognize that.”
THA has compiled a list of proposed cuts (PDF) that impact hospitals.
