The Board of Examiners on Tuesday approved a series of 24 contracts designed to help hospitals, clinics and other healthcare facilities in six rural counties cover costs from Medicaid patients.
The system uses what’s called
Intergovernmental Transfers to increase federal funding. Counties and health
districts that operate healthcare facilities transfer money to the state. The state
uses that money to leverage more federal funding, then transfers the local
money plus the added federal match money back to the local hospital districts
and health care facilities including clinics and senior care homes.
Since Medicare pays more for services
than Medicaid, the program helps pay the difference between Medicare and
Medicaid payments for different medical services.
The amounts that go back to
the local governments are calculated through a series of complicated formulas
known as the Upper Payment Limit program. UPL sets the reimbursement rates for
a variety of services and providers. The limit is designed to prevent
facilities from collecting more federal money than Medicare would pay for a
Hospital officials have long
said the money is extremely important especially to small rural centers and
clinics that often operate on a very narrow profit margin.
The contracts approved Tuesday total $44.6 million. Humboldt will get $20.7 million, White Pine $7.6 million, Lincoln $5.7 million, Lander $6.1 million, Pershing $2.5 million and Southern Lyon Hospital District $1.97 million.