The state of Kansas plans to scrutinize Kansas City, Mo.-based Children's Mercy Hospital's expenses following the hospital's request for a Medicaid rate change that would have cost the state $30 million, The Kansas City Star reports.
The inquiry comes after Republican Kansas Gov. Sam Brownback signed a budget Sunday elevating Children's Mercy Hospital's KanCare state Medicaid payments by roughly $5 million annually. The boost followed previous cuts implemented in 2015.
Angela de Rocha, a spokesperson for the Kansas Department of Health and Environment, told The Kansas City Star the state settled on the $5 million increase after denying the hospital's higher requested rate change.
"The hospital claims to be losing money on KanCare, [the state's Medicaid program], but the State of Kansas has been unable to validate that claim," Ms. de Rocha said. "Children's Mercy is one of the highest paid hospitals in the KanCare program. They have leverage on their rates because they are the only children's hospital available to KanCare members."
The state's audit is planned for the next fiscal year. State officials hope to "validate" the hospital's true expenses, the report states.
A Children's Mercy spokesperson told The Kansas City Star the hospital "welcomes, and absolutely supports, an independent study to review reimbursement for the care of children enrolled in KanCare."