Mississippi hospitals to receive additional funding despite lower than expected amount

This year, Mississippi hospitals that were on the brink of closure will receive much-needed additional funding. However, the amount they will receive is significantly lower than the initial estimates. The Mississippi Division of Medicaid has proposed changes to the way it calculates the “supplemental payments” received by hospitals in the state.

One of the supplemental payments, known as the Mississippi Hospital Access Program payments, gives hospitals the difference between the actual amount paid by Medicaid for the services rendered and what Medicare would have paid for similar claims. This offsets the losses incurred due to standard Medicaid payments being too low.

However, on Feb. 15, the Mississippi Division of Medicaid requested changes to this model. The new proposal will pay hospitals the difference between Medicaid rates and what an average commercial plan’s rate would have paid. The goal of this change is to generate more money for the hospitals.

According to Tim Moore, the President of the Mississippi Hospital Association, the initial estimate for the supplemental funds generated by the MHAP program after the change was around $450 million. However, the most recent calculation amounts to $40.2 million.

Although the change in the model was made with the intent of generating more funds for the hospitals, the recent estimates indicate a significantly lower amount. This news comes as a blow to the Mississippi hospitals that were already struggling to stay afloat.

The reduction in the supplemental payments could mean that many hospitals in the state will have to close down. This, in turn, will have a significant impact on the people who rely on these hospitals for their healthcare needs.