Local KY hospitals receives over $48M in state, federal funding

Local KY hospitals receives over $48M in state, federal funding

KENTUCKY (WFIE) - 54 rural hospitals in Kentucky are getting part of $383 million in state and federal money.

Gov. Beshear said it’s after a 13-year-old dispute regarding Medicaid funding rates was settled.

He said $425 million was budgeted for the state’s liability, but after negotiations, it’s now $93.9 million.

The Governor said the settlement saved the state more than $300 million and provides long-awaited funds immediately back to rural hospitals.

Locally, this funding includes $33,681,003 for Owensboro Health Regional Hospital, $11,827,185 for Baptist Health in Madisonville, $1,736,553 for Owensboro Health Muhlenberg Community Hospital, and $1,356,061 for Methodist Health.

“The funding is much-needed relief to our rural hospitals and health care workers that have been on the frontlines helping to fight the global pandemic,” Gov. 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.”

“In the midst of the coronavirus crisis, I’m proud to work with the Trump Administration and Gov. Beshear to deliver urgently needed resources for more than 50 of Kentucky’s rural hospitals,” said Senate Majority Leader McConnell. “As the only congressional leader not from New York or California, I’m constantly working to direct national attention and federal resources to rural America, and especially Kentucky. The medical professionals at our rural hospitals have shown their courage and dedication every day throughout this pandemic, and it’s my privilege to thank and support them.”

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.

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