The Florida Current Follow-Up Report: State gives hospitals another 20 days to come up with $45 million to avoid Medicare rate cuts
The Florida Current follows up on its story about Florida hospitals have been given an additional 20 days to find $45 million or face reductions in their Medicaid rates:
Above: Rep. Matt Hudson answers questions on the floor of the House.
(Photo Credit: Meredith Geddings, Florida House of Representatives)
Hospitals have been given an additional 20 days to find $45 million or face reductions in their rates.
Agency for Health Care Administration Secretary Liz Dudek sent a letter to hospitals on June 2 advising them of the extension to send money to Tallahassee to plug a shortfall or have their Medicaid rates reduced, possibly as early as July 1.
“The new deadline is close of business June 20, 2011,” Dudek wrote in a brief letter.
It’s the second letter AHCA Secretary Dudek has sent to hospitals in the last eight days advising hospitals of a $45 million shortfall in intergovernmental transfers, or IGTs. IGTs are collected by counties or taxing districts and are used to help finance Medicaid, including reimbursements for hospitals.
The $45 million shortfall is the result of higher than anticipated hospitalizations for Medicaid patients from July 1, 2010 through June 30, 2011.
The first letter was sent May 24 and advised the hospitals they had seven days -- including the weekend and Memorial Day -- to contribute $45 million or face rate reductions. An analysis conducted by the Safety Net Hospital Alliance of Florida showed that including federal dollars the cut would equal about $123 million.
After being advised of the shortfall by the Florida Tribune, Rep. Matt Hudson, R-Naples, blasted the agency for not advising the Legislature of the shortfall while it was in session.
Additionally Hudson -- who chairs the committee responsible of the agency’s budget -- criticized the agency for giving the facilities less than one week to find $45 million.
Hudson told the Florida Tribune that he had a “lengthy conversation” with Dudek to air his concerns about the “process.” Dudek called him back early morning Thursday, Hudson said, to say she “had talked to the plaza level” and would extend the deadline. "Plaza level" refers to the governor's office, which is located on the first floor of the Capitol.
Hudson said in his phone call with Dudek he made clear he was not pleased with the agency
“I was very ‘critical,' I guess that would that could be the politically correct word,” Hudson said, adding that had he known about the $45 million deficit he perhaps wouldn’t have agreed to cut hospitals’ reimbursement rates by 12 percent in the upcoming fiscal year, which begins June 1, 2011.
Hudson said he warned the agency against ever “blindsiding the Legislature again.”
AHCA did not respond to requests about the phone call between Hudson and Dudek.
If the $45 million cannot be collected, Jackson Memorial would see a $22 million reduction in rates, an analysis prepared by the Safety Net Hospital Alliance of Florida shows.
Shands Jacksonville and Shands Gainesville would see a $6.7 million and a $3.9 million reduction, respectively and Tampa General would have a $5.8 million reduction, the SNHAF review shows.
Additionally, Memorial Healthcare System (comprised of Memorial Hollywood, Memorial Miramar, Memorial Pembroke Pines and Memorial West) would see a $7.1 million hit. And Broward Health (comprised of Broward General, Coral Springs, Imperial Point and North Broward Medical Center) would see a $5.3 million hit.
For more information about Miami-Dade, Broward and Palm Beach County home health care for seniors and other family members, contact Brian Gauthier at A Family Member Home Care (954) 986-5090 or www.afamilymemberhomecare.com.
Above: Rep. Matt Hudson answers questions on the floor of the House.
(Photo Credit: Meredith Geddings, Florida House of Representatives)
Hospitals have been given an additional 20 days to find $45 million or face reductions in their rates.
Agency for Health Care Administration Secretary Liz Dudek sent a letter to hospitals on June 2 advising them of the extension to send money to Tallahassee to plug a shortfall or have their Medicaid rates reduced, possibly as early as July 1.
“The new deadline is close of business June 20, 2011,” Dudek wrote in a brief letter.
It’s the second letter AHCA Secretary Dudek has sent to hospitals in the last eight days advising hospitals of a $45 million shortfall in intergovernmental transfers, or IGTs. IGTs are collected by counties or taxing districts and are used to help finance Medicaid, including reimbursements for hospitals.
The $45 million shortfall is the result of higher than anticipated hospitalizations for Medicaid patients from July 1, 2010 through June 30, 2011.
The first letter was sent May 24 and advised the hospitals they had seven days -- including the weekend and Memorial Day -- to contribute $45 million or face rate reductions. An analysis conducted by the Safety Net Hospital Alliance of Florida showed that including federal dollars the cut would equal about $123 million.
After being advised of the shortfall by the Florida Tribune, Rep. Matt Hudson, R-Naples, blasted the agency for not advising the Legislature of the shortfall while it was in session.
Additionally Hudson -- who chairs the committee responsible of the agency’s budget -- criticized the agency for giving the facilities less than one week to find $45 million.
Hudson told the Florida Tribune that he had a “lengthy conversation” with Dudek to air his concerns about the “process.” Dudek called him back early morning Thursday, Hudson said, to say she “had talked to the plaza level” and would extend the deadline. "Plaza level" refers to the governor's office, which is located on the first floor of the Capitol.
Hudson said in his phone call with Dudek he made clear he was not pleased with the agency
“I was very ‘critical,' I guess that would that could be the politically correct word,” Hudson said, adding that had he known about the $45 million deficit he perhaps wouldn’t have agreed to cut hospitals’ reimbursement rates by 12 percent in the upcoming fiscal year, which begins June 1, 2011.
Hudson said he warned the agency against ever “blindsiding the Legislature again.”
AHCA did not respond to requests about the phone call between Hudson and Dudek.
If the $45 million cannot be collected, Jackson Memorial would see a $22 million reduction in rates, an analysis prepared by the Safety Net Hospital Alliance of Florida shows.
Shands Jacksonville and Shands Gainesville would see a $6.7 million and a $3.9 million reduction, respectively and Tampa General would have a $5.8 million reduction, the SNHAF review shows.
Additionally, Memorial Healthcare System (comprised of Memorial Hollywood, Memorial Miramar, Memorial Pembroke Pines and Memorial West) would see a $7.1 million hit. And Broward Health (comprised of Broward General, Coral Springs, Imperial Point and North Broward Medical Center) would see a $5.3 million hit.
For more information about Miami-Dade, Broward and Palm Beach County home health care for seniors and other family members, contact Brian Gauthier at A Family Member Home Care (954) 986-5090 or www.afamilymemberhomecare.com.
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