Illinois Hospital Assessment Plan Stalled Because of Blagojevich’s Legal Troubles, State Money Shortage
A so-called "hospital assessment plan" in Illinois that is intended to draw down about $1 billion annually in federal Medicaid funds has not been implemented because of former Gov. Rod Blagojevich's (D) legal troubles and the state's fiscal problems, the GateHouse News/Peoria Journal Star reports. Federal officials approved the plan on Dec. 4, 2008, and hospitals had expected to start receiving the funds by Feb. 1. Under the plan, money hospitals pay to the state is used to draw down federal funding.
Hospitals need about $1 billion to start the assessment program but they have been unable to come up with those funds. Howard Peters, senior vice president of the Illinois Hospital Association, said once the program begins, it will be self-financing, which means that if state officials borrow money to start the program, "they immediately get the money back and can pay off the borrowing and come out ahead." Peters said, "There are hospitals that can't survive without the assessment money." He added, "They are borrowing against it to make payroll."
State Sen. Jeff Schoenberg (D) on Friday filed legislation that would authorize the state to borrow up to $1.5 billion to pay hospitals and receive any additional federal money that might be available through the economic stimulus package. Annie Thompson, a spokesperson for the Illinois Department of Healthcare and Family Services, said under the law that established the program, the state has 100 days after federal approval of the plan to begin making payments to hospitals, which would be March 14. She said, "The department is currently working with the governor's budget office to identify resources available to begin making those payments" (Colindres, GateHouse News/Peoria Journal Star, 2/8).
