Southwest Mississippi Regional Medical Center could get an additional $17 million under a proposal Gov. Tate Reeves announced Thursday to give some $700 million to hospitals, whose financial straits have been called a financial crisis and a key election-year issue.
Reeves unveiled what he called two major reforms in Medicaid reimbursements. Once the reforms are in place, Southwest would receive a 213% increase in Medicaid revenue. The moves need federal approval and would be retroactive to July 1, if OK’d.
“We really appreciate all the hard work of Governor Reeves and others to make these reforms possible,” said Southwest Mississippi Regional Medical Center CEO Charla Rowley. “All Mississippi hospitals will benefit from these reforms. It is a good day for Mississippi health care.”
The first reform, the Mississippi Hospital Access Program, will allow hospitals in the Mississippi Medicaid managed care system to receive payments closer to the average commercial rate, which would reach the federal ceiling for Medicaid reimbursement.
The second reform would ensure that hospitals will be reimbursed for inpatient and outpatient services at the Medicare upper payment limit.
The payments will be partially funded using money that hospitals pay annually into the Medicaid program.
Reeves’ plan was met with some skepticism from Democrats, who have for years called on the governor to expand Medicaid availability to Mississippi’s working poor, which is a position Reeves has opposed.
The hospital crisis has become a key campaign issue for Reeves and his Democratic opponent, Brandon Presley.
Earlier this week, hospital officials in Greenwood said they’re concerned the medical center could soon cease operations after Leflore County supervisors refused to use $1 million from a $10 million line of credit to help it make payroll.
Presley, who spoke at length about the hospital crisis during a campaign stop in Summit last week, said in a statement Tuesday that Reeves’ efforts were “too little, too late.”
“Tate Reeves has had 12 long years to do something about Mississippi’s hospital crisis, and 47 days before an election is too little, too late for the hospitals that have cut essential services, lost jobs, or are on the brink of closing altogether,” he said.
While Rowley is hopeful the reforms will help Southwest’s finances, she also voiced concern for hospitals, citing rising costs and stagnant fees that bring in income as problematic.
Reeves said panel consisting of the Mississippi Healthcare Collaborative, the Mississippi State Department of Health, the Mississippi Division of Medicaid and a representative from the Governor’s office will continue to meet and work on future reforms.
“Today’s action will have a major impact, but this is still just the beginning,” Reeves said. “Our eyes are set on the future, and we aim to continue ushering in reforms that strengthen Mississippi’s healthcare system no matter where you live in the state.”
