Hospital Execs: Proposal Threatens Rural Hospitals

Calling it a ?tax on sick people? in Mississippi?s Daily Journal, Richard Hilton, chief financial officer for Oktibbeha County Hospital in Starkville, isn?t too keen on a proposed Medicaid assessment on hospitals.

Mississippi Governor Haley Barbour issued a proposal that would halve the money raised through the assessment on gross revenue; hospital executives, however, say the assessment is improper and still devastating.

The proposed plan works like this: hospitals will give up a ?small piece? of gross revenue to make up for a Medicaid shortfall of $360 million inflicted on the state. After managed care discounts, charity care and bad debt, hospitals might have 40 to 50 percent of their gross revenues in cash to pay the bills, and it?s that money that?s being most affected by the Medicaid assessment.

It?s not just spelling trouble for smaller hospitals, either. Even for hospitals with healthy bottom lines, the assessment could jeopardize their ability to replace aging equipment and maintain aging buildings, officials said.

You can read the full story at Hospital execs: Proposal threatens rural hospitals.