Nebraska Gov. Jim Pillen signed a bill into law paving the way for $1 billion in new federal funds for Nebraska hospitals.LB 1087 is being called a “game changer” to stabilize facilities, especially in rural areas, by increasing the reimbursement rates for Medicaid patients without tapping into any additional state revenues.”We have a billion reasons for it a be a great day,” Pillen said. It also marks a different attitude from the top about accepting federal dollars.”I believe it’s important as your governor to work for more than our fair share of federal dollars,” Pillen said.The bill allows hospitals to tap into the federal system to get reimbursed for Medicaid patients. No new state dollars are used. Instead, hospitals have to pony up 6% of their revenues, but payback comes closer to covering the actual cost. “Our hospitals are hurting since COVID, the middle of 2020. The cost to provide care across our members is up about 33.2%,” Nebraska Hospital Association President Jeremy Nordquist said. “And during that time period and Medicare-Medicaid rates have been to 3%.”Nordquist said 59% of rural critical access hospitals are running the red, three have closed labor and delivery units, and one recently shut down in-patient care.”This bill is a way to stop that to stabilize the financial situation of our hospitals,” Nordquist said.Methodist Fremont Health hosted the signing ceremony Friday.Preliminary estimates show they alone could get an additional $7.6 million.Methodist Fremont Health President and CEO Brett Richmond said they will use the added funds to recruit and retain doctors and nurses and expand their 20-bed inpatient behavioral health unit.”We’ll continue to invest in those and grow those services to meet the needs of our community,” Richmond said.The sponsor of the bill said 44 other states are already doing this.”There are people that say we don’t want to take any federal money. And I said on the floor, ‘Who’s the chump when 44 other states are doing it?” State Sen. Mike Jacobson said. “This is an important deal, and we ought to be getting our share of the federal dollars,” Jacobson said. A similar method to help nursing homes recoup their Medicaid costs is working its way through the legislature.LB 130 is on final reading and is expected to be voted on as early as next week.It could bring in an additional $23 million for licensed nursing and skilled care facilities.Click here for the latest headlines from KETV NewsWatch 7
Nebraska Gov. Jim Pillen signed a bill into law paving the way for $1 billion in new federal funds for Nebraska hospitals.
LB 1087 is being called a “game changer” to stabilize facilities, especially in rural areas, by increasing the reimbursement rates for Medicaid patients without tapping into any additional state revenues.
“We have a billion reasons for it a be a great day,” Pillen said.
It also marks a different attitude from the top about accepting federal dollars.
“I believe it’s important as your governor to work for more than our fair share of federal dollars,” Pillen said.
The bill allows hospitals to tap into the federal system to get reimbursed for Medicaid patients. No new state dollars are used.
Instead, hospitals have to pony up 6% of their revenues, but payback comes closer to covering the actual cost.
“Our hospitals are hurting since COVID, the middle of 2020. The cost to provide care across our members is up about 33.2%,” Nebraska Hospital Association President Jeremy Nordquist said. “And during that time period and Medicare-Medicaid rates have been to 3%.”
Nordquist said 59% of rural critical access hospitals are running the red, three have closed labor and delivery units, and one recently shut down in-patient care.
“This bill is a way to stop that to stabilize the financial situation of our hospitals,” Nordquist said.
Methodist Fremont Health hosted the signing ceremony Friday.
Preliminary estimates show they alone could get an additional $7.6 million.
Methodist Fremont Health President and CEO Brett Richmond said they will use the added funds to recruit and retain doctors and nurses and expand their 20-bed inpatient behavioral health unit.
“We’ll continue to invest in those and grow those services to meet the needs of our community,” Richmond said.
The sponsor of the bill said 44 other states are already doing this.
“There are people that say we don’t want to take any federal money. And I said on the floor, ‘Who’s the chump when 44 other states are doing it?” State Sen. Mike Jacobson said.
“This is an important deal, and we ought to be getting our share of the federal dollars,” Jacobson said.
A similar method to help nursing homes recoup their Medicaid costs is working its way through the legislature.
LB 130 is on final reading and is expected to be voted on as early as next week.
It could bring in an additional $23 million for licensed nursing and skilled care facilities.
