After Funding Dispute, Kentucky City, County To Resume Indigent Care Payments to University Hospital

The city of Louisville, Ky., and Jefferson County each will resume $330,000 monthly payments and will give University Hospital $2.6 million in back payments after settling a dispute over financing of indigent care, the Lousville Courier-Journal reports. Under a 1984 agreement, the city and county each pay the hospital about $4 million each year for indigent care, and Kentucky contributes an additional $20 million. Once the hospital began receiving federal funds through the Disproportionate Share Hospital program, it reimbursed the city and county. However, because those federal funds have "dwindled" over the last few years, rebates from the hospital to the city and county became "sporadic." As a result, the city and county in February began withholding funds from the hospital. In total, the city and county withheld $2.6 million. Under the agreement, the city and county will resume payments and the hospital will repay the city and county $2.1 million each in disputed rebates after July 1, but will cease all reimbursements after that, according to hospital spokesperson Ken Marshall. Marshall added that the hospital will use funds from a "variety of sources," including patient fees and provider payments, to repay the city and county. University Hospital, which provides indigent care to approximately 35,000 people per year, did not reduce any indigent services during the time the local governments withheld funds, Marshall said (Shafer, Louisville Courier-Journal, 5/31).