The head of the Department of Healthcare and Family Services told lawmakers that early discussions are ongoing on ways stakeholders can address the “increasingly fragile” state of Illinois’ safety net health system.[Health News Illinois]
HFS Director Elizabeth Whitehorn told the House’s Appropriations-Health and Human Services Committee last week that there are 32 Illinois hospitals that meet safety net designation, which received an estimated $2.9 billion for Medicaid services in the 2024 calendar year.
Along with years of structural budget challenges, Whitehorn said many safety nets are struggling to adjust as healthcare moves more toward outpatient, community-based and home-based care models.
HFS has provided advances as a form of bridge funding to enable hospitals to weather emergency financial situations, but Whitehorn said this has also led to a growing number of facilities either falling behind or failing to pay their taxes, which is a “critical revenue source” for the Medicaid program.
“This situation is not sustainable for the healthcare system or the state budget,” she said.
The agency is in the “earliest stages” of a comprehensive planning effort to bring stakeholders together to discuss sustainable strategies and solutions for safety-net providers.
Once running, Whitehorn said the process will include listening sessions, proposed policy changes and enhanced coordination between HFS and the Department of Public Health. The project will be led by Dan Fulwiler, who was appointed last fall as the state’s hospital strategy lead.
“This work does not contemplate closure of safety net hospitals or providers,” Whitehorn said. “It is focused on how we all can best serve patients and work together to leverage efficiencies that will enable safety-net providers to operate more sustainably over time.”
In other business, Whitehorn said they are still working to prepare Illinois for the various changes to the Medicaid program, which includes work requirements set to go into effect next year.
The department’s new estimates are that between 165,00 and 300,000 Illinoisans will lose Medicaid coverage due to the work requirement set to go into effect next year. The new federal definition of qualified aliens is expected to result in coverage loss for approximately 10,000 individuals who currently receive full benefits.
Illinois is facing a nearly $51 billion reduction in Medicaid expenditures over the next decade.
“Never before has the Medicaid program undergone such significant policy changes, let alone in such a short period of time,” Whitehorn said. “While we are confident in our ability to meet these obligations, it places enormous pressure and stress on our staff, systems and partners to ensure we are successful in satisfying the federal requirements while also providing a seamless experience for our customers.”
Whitehorn said the department has hired 220 employees since June 1 to help with the increased demand to implement the federal requirements.
In other business, she told lawmakers they are requesting a $100 million supplemental appropriation for the current fiscal year for the new rural health care transformation fund, which she said will allow them to draw down the roughly $193.4 million in federal funding that Illinois has been awarded.
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