County-based Hospital Assessment

Background

Faced with treating an increased number of Medicaid patients and uninsured individuals due to the economic slowdown, urban hospitals located in one of the nation’s largest cities were dealing with the reality of the recession. State and city leaders understood the financial strain the hospitals were under and wanted to help. However, due to reduced budgets, state and city leadership did not have the resources to provide financial assistance to the hospitals. Sellers Dorsey, who was working with the state, conceived and designed the first-ever county-based hospital assessment.

The Collaboration

Working with the state, the experienced team at Sellers Dorsey:

  • Designed the concept and modeled the assessment and new payment mechanism;
  • Briefed hospital executives, city officials, and other critical stakeholders;
  • Drafted necessary state and city legislation, public notices, state plan amendments, and waiver applications to CMS;
  • Provided technical expertise during discussions between the state and CMS to secure approval; and,
  • Provided assistance to implement and maintain the assessment.

The Results

The hospital assessment is producing an additional $90 million in funds annually to the city, the state, and urban hospitals. The initiative continues to provide much needed resources to these urban safety net hospitals in difficult economic times.