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February 14 2022 12:00 am

$1.1 billion to be made available to Kentucky support hospitals in 2022


FILE – In this April 7, 2021, file photo, Kentucky Gov. Andy Beshear speaks to reporters at the Kentucky State Capitol in Frankfort, Ky. The Kentucky governor’s efforts to aggressively combat COVID-19 suffered a landmark legal defeat Saturday, Aug. 21, as the state’s high court cleared the way for new laws to rein in his emergency powers.
(AP Photo/Timothy D. Easley)

FRANKFORT, KY (WOWK)—Kentucky Governor Andy Beshear announced on Wednesday that Kentucky hospitals can receive up to $1.1 billion in increased payments in 2022 so long as they meet federal quality measures.

The funding, which is available through a federally-approved, state-directed payment model, is intended to help improve and expand quality healthcare to Kentucky’s 1.6 million Medicaid members.

Over 33% of the commonwealth’s population is enrolled in Medicaid, so Governor Beshear thinks these payments are critical to ensuring equal healthcare access for all Kentuckians.

“Health care is a basic human right, and our people deserve the best care possible,” Gov. Beshear said. “This year, our state has faced so much tragedy and heartbreak from the pandemic, tornadoes and other natural disasters, and we are thankful to our hospitals for continuing to provide quality health care to our Kentucky families in need.”

According to Cabinet for Health and Family Services (CHFS) Secretary Eric Friedlander, this is the second announcement of funding to Kentucky hospitals in 2021. Governor Beshear announced an additional $800 million to $1 billion in funding back in January.

Kentucky Hospital Association (KHA) President Nancy Galvagni said: “On behalf of our members, KHA is thrilled the Centers for Medicare & Medicaid Services approved continuation of the Hospital Rate Improvement Program for calendar year 2022. The ongoing partnership between CHFS and Kentucky’s hospitals made this application successful, and we are grateful to Secretary Friedlander, Medicaid Commissioner Lisa Lee and her staff for all of their work to achieve this outcome for the hospitals and our patients. We look forward to working with our members and the cabinet to further improve the care all Kentuckians receive.”

“Medicaid is the largest payer of health care services in our commonwealth and we must continue to think outside the box to bring this program further into the 21st century,” said Commissioner Lee. “This collaboration between Medicaid and KHA is an example of that type of innovative thinking, allowing us to reward our providers for delivering quality services to our members.”

University hospitals and state mental hospitals are excluded from this payment increase per Kentucky state law.

The payment initiative is in place for all of 2022 and will need to be renewed for each year going forward.

For more information about Kentucky’s Medicaid program, click here.

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