The Boards of GHA, the Georgia Alliance of Community Hospitals, and Hometown Health worked together to approve a hospital provider payment agreement with the state that sets the best course of action
for healthcare during these difficult economic times. After negotiations with Senate and House leadership, including Lt. Gov. Casey Cagle and House Speaker David Ralston, these leaders agreed with the proposed provider payment agreement.
After careful deliberations, we are confident that this proposal will preserve our hospitals’ ability to continue providing for the health needs of patients in the future, while meeting the state’s budget requirements. While the proposal is far from perfect, it reaches a fair compromise that we all agree is far more palatable than the removal of the sales tax exemption for not-for-profit hospitals and a 10.25 percent Medicaid rate cut, either of which jeopardize our ability to serve our patients.
The highlights of this agreement include:
• The payment rate will net the state $175 million and will provide a commensurate increase in Medicaid rates. Payments from hospitals will be based on net patient revenue reflected in the 2008 DCH Hospital Financial Survey and will be updated annually.
• Payments to the state would be effective beginning July 1, 2010 and would be due the last day of each calendar quarter (i.e., Sept. 30, Dec. 31, Mar. 31, and June 30).
• Funds will be appropriated to the Indigent Care Trust Fund in a manner that will maximize the federal match to health care for medical assistance payments.
• The agreement will “sunset” after three years (will expire June 30, 2013).
• Payments from hospitals will be capped at the same percentage for three years.
• Leadership will make a determined effort to avoid cuts to Medicaid rates for three years.
• The following will be exempt from making the payments (will require a Waiver):
- Critical Access Hospitals
- Psychiatric hospitals
- State-owned hospitals
• Hospitals may count their payments toward meeting indigent care commitments under CON requirements and toward any calculation of community benefits prepared by hospitals or required or requested by the state for any other purpose.
It is important to emphasize that all three organizations stand unified in this proposal and need your help urging passage of this legislation during these final hours before Friday’s March 26 Crossover Day. Even though hospitals support this provider payment agreement, House and Senate leaders need enough votes to pass this agreement. It is imperative that all Georgia hospital CEOs contact their elected officials immediately and ask them to support this new provider payment agreement. In these difficult economic times, our boards wholeheartedly concur that this plan is the best way to preserve the long-term viability of the Georgia hospital community. Simply put, the alternatives to this agreement would be
devastating to all Georgia hospitals and those we serve.
Please join us in the critical passage of the Provider Payment Agreement. We appreciate your support and trust in these crucial matters and welcome any feedback or questions you may have.
 
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