Deal reached on hospital assessment program

Officials have reached an agreement on a renewal to the state’s hospital assessment program.

The $3.8 billion plan, which would run from July 1 through the end of 2022, would increase funding for hospitals by nearly $250 million a year.

It also includes $150 million for “innovative future healthcare projects under guidelines that are being developed,” according to the Department of Healthcare and Family Services.

The plan has been submitted to the Centers for Medicare and Medicaid Services for approval. It also needs authorization from the General Assembly.

HFS said in a statement the plan will “move to a more dynamic payment system that is responsive to the needs of individual member decisions on where to seek care.”

“The importance of hospitals has never been higher, so our support should be stronger, especially for hospitals relying more on state Medicaid resources for funding,” said Sen. Heather Steans, D-Chicago, a member of the Medicaid working group that hashed out the details of the plan.

“With this proposal, we ensure that more Medicaid dollars will come into Illinois, with vital support being directed to those who are most in need,” added Sen. Dave Syverson, R-Rockford, another member of the workgroup.

HFS also said Tuesday that it’s issuing $75 million in “stability payments” to hospitals to recoup losses from responding to the COVID-19 crisis. The funding is being sent through the state’s Medicaid managed care organizations.

“This funding relief, as well as the next phase of the hospital assessment program, are critical to preserving access to care, especially for vulnerable communities, during this health crisis and for the future,” Illinois Health and Hospital Association CEO A.J. Wilhelmi said.