Delays in Medicaid Pay Create Problems for Hospitals

Stephen Tweed | January 17, 2013 | Newsroom
by Stephen Tweed An article in Today's Wall Street Journal (1-16-13) describes how hospitals in Maine are concerned that further deficit talks in Washington may erode funding for Medicaid.  A coalition of 39 Maine hospitals is demanding $484 million in back payments from Medicaid going back to 2009.The Maine hospitals have launched radio and newspaper…

by Stephen Tweed

An article in Today’s Wall Street Journal (1-16-13) describes how hospitals in Maine are concerned that further deficit talks in Washington may erode funding for Medicaid.  A coalition of 39 Maine hospitals is demanding $484 million in back payments from Medicaid going back to 2009.

The Maine hospitals have launched radio and newspaper ad campaigns to press state legislators for payment.

“When the State doesn’t pay its bills,
Hospitals can’t pay theirs.”

While Maine’s delay is highly unusual, other states are showing months-long delays in making payments for services provided to Medicaid beneficiaries.

What Impact on Home Health Care?

What impact are these Medicaid payment delays having on home health agencies?  What % of your home health agency or hospice revenues come from Medicaid?

As we have talked with leaders across the country, we see a wide range of payer mix depending on how well Medicaid reimburses home health services.

I was facilitating an online sales meeting yesterday morning with three offices of one company in two different states.  One state reimburses home care quite well and pays on a timely basis.  The other state pays very poorly and is often late.  This company is forced to have different strategies in different offices because of the different payment rates in these two states. 

One of the major factors causing this delayed payment is that the state of Maine expanded eligibility for Medicaid during better economic times and the sate now has one of the highest percentages of residents covered by the program.  This is potential threat in the future for all of us, as the Accountable Care Act increases the numbers of people who will be enrolled in Medicaid programs.  While the Feds will pay most of the bill at the beginning, in later years a bigger portion of the tab will fall to the states.

With Medicaid making up 7% of the federal budget, it’s a prime target for lawmakers looking for long-term cuts in government spending.

What do you think?  What’s happening in your state?

Stephen Tweed
Stephen Tweed, CSP, began his journey as a business strategist in home health care in 1982. Today, Stephen is among the top thought leaders in Home Care strategy and management. He has worked with top 5% companies from across the US. He is a sought after speaker at from national and state association events.

Related Posts

Extraordinary Transformation: A blueprint for leaders who want to Transform their Organization

June 5, 2024
By Stephen Tweed As a leader in Home Care, are you working on transforming your organization? Are you looking for strategies and insights to grow your business and get ready for the future? I've just finished reading an amazing book by my friend and professional speaking colleague, Dr. Nido Qubein. "Extraordinary Transformation: An Entrepreneurial Blueprint…

Stephen Tweed’s Podcast and Webinar Appearances

May 30, 2024
As a significant Thought Leader in the Home Care industry, Stephen Tweed is frequently invited to be a guest on industry podcasts and webinars. Here are links to some of Stephen's recent appearances. May 2024 - "The Power of Peer Groups: How Home Care CEOs Propel the Industry's Growth" Stephen was interviewed by Ruby Mehta,…

The Forces and Trends Shaping the Future of Home Care.

May 14, 2024
By Stephen Tweed What will the Home Care Industry look like in five years? Over the past two decades I've been actively engaged in the Home Care Industry, and monitoring the Forces and Trends that are shaping the future of our industry. While much of the growth of Home Care is driven my the entrepreneurial…