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Hospitals Support Physician Medicaid Increase,
COLUMBUS—The Ohio Hospital Association (OHA) commends Gov. Ted Strickland’s decision to halt the planned 2008 recalibration of Medicaid rates for hospitals and to provide physicians with their first Medicaid update in seven years, effective July 1, 2008.
“The governor should be applauded for his action today to ensure Ohioans have access to primary care by providing necessary reimbursement to the health care community in this difficult economic time,” said James R. Castle, president & CEO of OHA. “I would be remiss if I did not mention our members’ disappointment that we have not found the funds to provide hospitals a Medicaid update in 2008.”
According to original estimates, the delayed recalibration will spare hospitals $13 million in losses statewide on care provided in Medicaid fee-for-service settings. OHA is working with the Ohio Department of Job of Family Services to verify the accuracy of the fee-for-service estimate as well as obtain a managed care estimate.
The state most recently estimated the freeze on hospital reimbursement will save $32.6 million over the biennium on fee-for-service. With managed care and federal Medicaid funds included, OHA estimates the impact could be as high as $159 million over two years.
Hospitals are already underpaid for Medicaid services at 92 cents on the dollar.
On Monday, representatives of OHA, the Ohio Osteopathic Association, the Ohio State Medical Association and the Ohio Children’s Hospital Association met with the governor and his staff to ask that the 3% increase be restored for all providers.
The Ohio Hospital Association was established in 1915 and currently represents 170 hospitals and 40 health systems throughout Ohio. OHA is a membership-driven organization that provides proactive leadership to create an environment in which Ohio hospitals are successful in serving their communities. Visit OHA’s Web site at www.ohanet.org. For information on top health care issues, visit the online OHA News Media Center at www.ohanet.org/media/.
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