Hospital Assessment Program

Hospital Assessment Programs are a mechanism for States to bring more federal dollars into their healthcare systems. The Illinois Hospital Assessment program is funded by a special tax on hospitals, which is then matched by funding from the federal government to ensure low-income patients have adequate access to healthcare services.  This funding is critical to make up for low reimbursement from the state’s Medicaid program, and to support safety net hospitals that care for a disproportionate number of low-income and uninsured patients.

 

 

What’s New?

  • The Illinois Hospital Assessment program was reauthorized by the General Assembly in May 2020 and received federal approval to become effective July 1, 2020. It will bring a net annual gain of nearly $450 million in revenue for Illinois hospitals and health systems, including an estimated $17 million to AMITA Health.
  • The Department of Healthcare and Family Services (HFS) implemented the new assessment at the beginning of the state’s fiscal year, which started July 1, 2020.
  • The assessment will remain in effect for three years.

 

Why does it matter?

  • Illinois has some of the lowest Medicaid provider reimbursement rates in the nation.
  • These payments help make up that Medicaid “shortfall” and represent over 50 percent of all payments made to Illinois Hospitals – significantly more for Safety-Nets
  • Under the assessment, payments will increasingly be linked to Medicaid inpatient and outpatient volume – meaning claims paid for care provided to Medicaid enrollees.

 

What is the AMITA Health perspective?

  • This tradition is our mission. Providing quality health care for under-served, poor and vulnerable communities is core to our faith-based mission.  Receiving funds from this Medicaid funding mechanism allows AMITA Health to continue fulfilling its mission.
  • System-wide, nearly 1/3 of AMITA Health patients are insured by Medicaid
  • Mercy Medical Center, Saints Mary and Elizabeth Medical Center and Glen Oaks Hospital are designated safety net

 

Featured News

Featured news includes articles from multiple viewpoints and is designed to keep you abreast of the current debate around this issue. This information should not be construed as our point of view.

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Combined hospital bed and outpatient tax increased by $140 million annually under new assessment program

Surrounded by Republicans and Democrats, Gov. Bruce Rauner on Monday signed legislation that updates the state’s hospital assessment program, an effort that could bring $3.5 ...

Illinois News Network + March 12, 2018 + View Article

Rauner signs new Medicaid funding plan for hospitals

Illinois Gov. Bruce Rauner signed a Medicaid funding plan Monday that aims to ensure hospitals in impoverished communities are adequately funded, although two South Side ...

State Journal Register + March 12, 2018 + View Article