Less than a month after state health officials warned of potential cuts in services for children and the disabled because of a looming budget deficit, Gov. Jeff Landry’s administration has unilaterally increased Medicaid payments by $22 million to seven hospitals across the state, Louisiana Illuminator reports.
The hospitals are in rural areas where it is difficult to find medical care and the administration says the facilities could be “forced to close” without the extra support.
Louisiana’s health department increased the hospitals’ Medicaid payments on Sept. 16 with no advance notice through an emergency rule process that circumvents the public hearings and comment periods that normally accompany such decisions.
Four of the seven hospitals receiving the rate increases are owned by Republican political donor Rock Bordelon. Ochsner Health System, Franciscan Missionaries of Our Lady and Christus Health System run the other three hospitals slated for higher Medicaid payments.
The hospital rate increase that helps the hospitals comes at a difficult financial time for Louisiana. The state is facing a $587 million budget deficit next fiscal year that could grow significantly worse.
