Gov. Andy Beshear and U.S. Senate Majority Leader Mitch McConnell announced Wednesday $383 million in state and federal dollars will go to 54 rural hospitals by settling a 13-year-old dispute regarding Medicaid funding rates. Owensboro Health Regional Hospital is receiving roughly $33.7 million.
John Hackbarth, chief financial officer for OHRH, said they are grateful for the leadership demonstrated by Beshear and McConnell to help move this settlement forward, not only for Owensboro Health, but on behalf of healthcare systems across Kentucky.
“Recovering this revenue gives Owensboro Health added financial strength as we recover from the pandemic, support our team members and invest in technology and programming that improves the health of the communities we serve,” he said.
Beshear said the settlement saved the state more than $300 million and provides long-awaited funds immediately back to rural hospitals.
“The funding is much-needed relief to our rural hospitals and healthcare workers that have been on the frontlines helping to fight the global pandemic,” Beshear said. “The hard work from our office along with support from Majority Leader McConnell and federal partners has resulted in millions of dollars in savings to the state and immediate payment to our rural hospitals. We expect to be issuing checks as early as next week.”
This litigation began with an administrative action in 2007 and then the lawsuit in 2013, all involving the rate-setting methodology used for acute care hospitals for 2007-2015. The hospitals claimed the methodology used by Kentucky Medicaid was invalid, and the Franklin Circuit Court and the Kentucky Court of Appeals agreed. The case is pending before the Kentucky Supreme Court.
