Reis, Jones Host Medicaid Reimbursement Forum
'Slow-Pay, No-Pay' Draws Fire from Area Health Care ProfessionalsJune 30, 2006
Flora.….Dozens of area health care professionals were in attendance Wednesday night in Flora to air their concerns about late Medicaid payments and the wide range of negative effects Illinois' current payment procedures are having on local businesses and communities.
The town-hall style meeting featured area doctors, pharmacists and hospital and nursing home administrators sharing personal stories of the dramatic impact late payments are having on their ability to provide quality healthcare. Hundreds of thousands, and in some cases, millions of dollars are owed to rural health care providers as some have waited as long as 9 months without any type of reimbursement from Illinois Public Aide.
One of the many topics discussed at the meeting was the amount of money currently owed to individual providers and the resulting cash flow problems that have lead to other business related complications. As the evening moved forward, revelations of the amount of money owed to different facilities in the area began to disseminate Way-Fair Nursing Home CEO Kathy Bunting reported that her facility is owed $1.2 million. Rich Herring of the Odd Fellows Rebekah Order in Mattoon reported that his facility is owed $811,542.19.
Dentist Harold Martin of Flora testified that his "one man, one office operation" has been forced to borrow upwards of $150,000 dollars through credit cards and the cashing out of home and personal life insurance equities to pay business expenses. Jane Owens of Flora Healthcare reported the facility is currently owed $596,000 and just recently received a payment for services rendered in December. Clay County Hospital administrator Susan Batchelor said the hospital located in Flora is currently owed $2.25 million dollars.
Stephen Hopkins of Lakeland Rehab and Health Care Clinic illustrated his point by detailing problems his facility has encountered because of late Medicaid reimbursements. "We are borrowing money to make payroll. Our late fees are embarrassing and our reputation in the business community has been hurt because we aren't able to pay our bills on time," Hopkins said.
Several speakers made special mention of the vulnerability of the clientele that they serve and admonished Governor Blagojevich and Illinois' Public Aide system for "preying" on poor and elderly Medicaid patients by not honoring the state's responsibility to pay its care providers on time. Dr. Michael Joseph, President of the Weber Medical Clinic in Olney said, "Present policies seem to be targeting the most vulnerable people and the people who care for them."
Jed Jones of the Southern Illinois Primary Health Care Associates in Fairfield said, "This system of no-pay, slow-pay is a tragedy. No one in Springfield seems to understand it." He went on to mention his concern over Governor Blagojevich's recent All Kids health care initiative and the fact that the governor has loudly trumpeted his record on health care during his bid for re-election. "Our situation reminds me of the Titanic. The orchestra is still playing on the deck while the ship is going down," said Jones.
Staffing issues have also come about due to the state's sluggish reimbursement rate, as health care facilities fight to keep staff members on their payrolls. "We struggle to keep employees because we can only afford to pay them $8 dollars per hour," Jane Owens, administrator for Flora Healthcare Center said. "These people we take care of built our community. They were doctors and lawyers and mothers and fathers. Someone has to take care of them. They're always last."
A general feeling of hopelessness in regards to the Medicaid system could be felt as the testimonials continued. Tom Blasdel, owner of Shoe Creek Pharmacy in Wayne City, told the assembled crowd, "I know we were supposed to figure up and report the total amount of money owed to us by Medicaid here tonight, but I didn't do that. I just sort of stick my head in the sand some days because it is hard to keep a positive outlook when you actually look at the numbers and realize the real crisis situation we face because of these late payments."
The meeting was hosted by Rep. David Reis, Senator John O. Jones, and Flora Mayor Charlie Crowder. Rep. Reis began the meeting with introductory remarks regarding the state of Illinois' recently passed FY '07 $56 billion budget. "Democratic budget negotiators set aside $800 million dollars in special projects for legislators' districts in the city of Chicago. There is money for all these new programs and only a fraction is available to pay off our obligations. Illinois is a deadbeat state when it comes to paying its bills and I find it shameful that they appropriated only $80 million dollars to pay down a $2 billion dollar Medicaid backlog. That's like putting a band-aid on something that needs a tourniquet," Reis said.
Senator John O. Jones also hammered the current administration and referred to the Medicaid reimbursement system as a 'sham'. "We have a crisis in the state of Illinois. It is time for the Governor to recognize this crisis and show some leadership and help out those who in many cases are unable to help themselves by making sure our health care providers are paid on time," said Jones. "My colleagues and I are going to set up hearings like this all over the state and we are going to make sure that the health care industry's collective voice is heard on this issue," Jones said.
