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CEO says Medicaid extension will save Delta hospital $7M

GREENVILLE — The Mississippi Legislature’s decision to extend Medicaid will save Delta Regional Medical Center in Greenville about $7 million.

DRMC CEO J. Stansel Harvey tells the Delta Democrat Times that numbers from 2011, the most recent available, show 70 percent of patients in Greenville receive coverage through either Medicaid or the federal Medicare program. About 22 percent of those residents are on the Medicaid rolls, Harvey said.

With federal reductions set to hit starting Oct. 1, Harvey said the Greenville hospital is anticipating a revenue loss of more than $3.9 million.

“Delta Regional must quicken its strategic planning process to determine how to respond to anticipated revenue reductions of this magnitude,” Harvey said. “We will have to balance these reductions in revenue with equal reductions to our expenses.”

Under the Affordable Care Act, Medicare Disproportionate Share Hospital payments or policy adjustments to hospitals to offset the cost of uncompensated care for those without health insurance, will be reduced. Hospitals also must account for funds lost to the across-the-board federal budget reductions known as the sequester.

“Delta Regional Medical Center anticipates reductions in revenue … from the 2 percent cut in Medicare reimbursement from the sequestration, other regulatory cuts from Medicare surrounding the Value Based Purchasing initiatives, along with the upcoming reductions to Medicaid Disproportionate Share and Medicare DSH payments,” Harvey said.

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