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Underserved Communities May Have a Second Chance- Reopen Closed Hospital Proposal Provides Incentive for New Owners in Underserved Areas

21 Oct 2021 10:47 AM | Deborah Hodges (Administrator)

A House committee approved a plan Wednesday incentivizing new owners to reopen closed hospitals in Illinois. [Health News Illinois 10.21.2021]

The bill would allow a reopened hospital to continue to receive enhanced Medicaid rates for certain services at the same rate as the prior hospital, if the facility closed within three calendar years. That rate would stay in place until utilization data for the new facility is available for the Medicaid inpatient utilization rate calculation.

House Majority Leader Greg Harris, D-Chicago, told members of the House’s Executive Committee that the proposal is in response to the number of hospital closures in recent years and is intended to “help bridge the gap and incentivize” new owners to reopen facilities in underserved communities.


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