Terri Jo Littau, Woodward

OHCA Told Its Board No Hospital Cuts Were Coming. Days Later, It Filed $218 Million in Cuts With the Feds.

he Oklahoma Health Care Authority’s board was told Friday that its flat budget for the coming fiscal year would not require cuts to hospitals or other medical providers. Days later, the agency filed plans with the federal government to cut $218 million in Medicaid payments to state hospitals.

The filing with the Centers for Medicare & Medicaid Services proposed a 20% reduction to the Supplemental Hospital Offset Payment Program, which helps hospitals recover revenue lost when treating Medicaid patients compared with those covered by Medicare or private insurance. The Oklahoma Hospital Association said it was blindsided and sent a letter to OHCA Director Clay Bullard asking the agency to delay its federal filing until hospitals could review the estimates and assumptions behind the cut.

At Friday’s board meeting, Bullard told members the agency had found a way to cover an estimated $66 million shortfall using carryover funds and a legislative green light to tap a reserve account if needed.

“The summary of this budget is: hospitals got no cuts, providers got no cuts, no member will have a program that will be cut,” Bullard said.

The contradiction drew immediate pushback. Hospital Association president Rich Rasmussen said stakeholders had been warned earlier about possible SHOPP reductions tied to the agency’s budget shortfall, but believed those cuts were off the table after lawmakers approved an additional $250 million and legislative leaders gave the agency flexibility to access reserves.

A series of meetings with lawmakers and hospital officials is scheduled for Wednesday to discuss the proposed cuts. OHCA officials did not respond to requests for comment.

Paul Monies reported the details in his story.

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On July 2, 1862, Union troops surprised and routed a Confederate encampment at Locust Grove in present-day Mayes County, part of the campaign to drive Confederate forces from Indian Territory.

Ciao for now,

Ted Streuli Executive Director, Oklahoma Watch tstreuli@oklahomawatch.org