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.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info