A nonprofit publication of the Kentucky Center for Public Service Journalism

Beshear, McConnell settlement over Medicaid funding secures $383 million for rural hospitals


Gov. Andy Beshear and U.S. Senate Majority Leader Mitch McConnell on Wednesday announced $383 million in state and federal dollars for 54 rural hospitals by settling a 13-year-old dispute regarding Medicaid funding rates.

The settlement negotiated by Beshear, with support from McConnell, successfully convinced the federal Centers for Medicare & Medicaid Services (CMS) to offer funding in combination with the state’s liability of $93.9 million. The previous administration had budgeted an estimated $425 million in state funding to settle the case.

Beshear said the settlement saved the state more than $300 million and provides long-awaited funds immediately back to rural hospitals.

Gov. Andy Beshear

“The funding is much-needed relief to our rural hospitals and health care workers that have been on the frontlines helping to fight the global pandemic,” Beshear said. “The hard work from our office along with support from Majority Leader McConnell and federal partners has resulted in millions of dollars in savings to the state and immediate payment to our rural hospitals. We expect to be issuing checks as early as next week.”

“In the midst of the coronavirus crisis, I’m proud to work with the Trump Administration and Govenor Beshear to deliver urgently needed resources for more than 50 of Kentucky’s rural hospitals,” said McConnell. “As the only congressional leader not from New York or California, I’m constantly working to direct national attention and federal resources to rural America, and especially Kentucky. The medical professionals at our rural hospitals have shown their courage and dedication every day throughout this pandemic, and it’s my privilege to thank and support them.”

Pikeville Medical Center Chief Executive Officer Donovan Blackburn said: “I want to thank Governor Beshear and Senator McConnell for bringing a positive resolution to this longstanding issue. The $8,043,076 that our hospital will receive could not come at a better time and will make a significant difference in our ability to deal with the ongoing pandemic and its financial impact. I am glad to see actions that help preserve and protect Kentucky’s hospital infrastructure to enable hospitals to continue to provide vital health care access across the commonwealth.”

“The $19.6 million King’s Daughters will receive as part of this settlement will help us maintain critical health care services and providers in our communities,” said King’s Daughters Health System President and Chief Executive Officer Kristie Whitlatch. “This funding comes at a time of intense pressure, when our organization is managing both response to the COVID-19 pandemic and working to ensure access to care following the closure of Our Lady of Bellefonte Hospital. Governor Beshear has been extremely supportive, and we appreciate his leadership and advocacy. We thank Senator McConnell for his assistance in helping to resolve this matter.”

This litigation began with an administrative action in 2007 and then the lawsuit in 2013, all involving the rate setting methodology used for acute care hospitals for 2007-2015. The hospitals claimed the methodology used by Kentucky Medicaid was invalid, and the Franklin Circuit Court and the Kentucky Court of Appeals agreed. The case is pending before the Kentucky Supreme Court.

Earlier this year Beshear asked CMS to exercise its authority to dedicate federal Medicaid funds owed to rural hospitals. Following a request from the Beshear administration, McConnell’s office contacted senior officials at CMS and at the U.S. Department of Health and Human Services reiterating the importance of a quick and positive decision for Kentucky’s rural hospitals.

On April 3, Beshear and McConnell announced the Centers for Medicare and Medicaid Services (CMS) approved Kentucky’s request to recover Medicaid federal match rates and provide federal funds for a payment.

To review the distribution of funds, click here.

From Office of the Governor

Want more great content like this?

Become a sustaining member of NKyTribune with a tax-deductible donation today and help us continue to provide accurate, up-to-date local news and information you can depend on.

Click here to donate now!


Related Posts

3 Comments

  1. Christine Branham says:

    Dear Governor Beshear, you approved the FEMA help for us that live here in Ky with damage from the flooding. I put in an application and I suppose was denied saying they wouldn’t do our bridge. That’s the only way we have getting to our house, we are up in age, the flood waters washed away the foundation holding the bridge up and the steal beams are swagging nearly hanging on. This is not right that some people are getting money who hardly have any damage and here we are needing help but denied. I pray you can help us, thank you sir.

  2. Reba Littrell says:

    U could help low come people why can’t they get checks to help,I can’t get loans nothing to help.

  3. Mark Ford says:

    WOW!!! Thank You so much for being an INCREDIBLE LEADER, in the face of tragedy! I Thank God for Your Leadership, Your Faith and Your Leadership in helping the community and the country, to heal. Thank You Sir!

Leave a Comment