Maryland Shifts Medicaid Funding to Hospitals, Payors

Tags: expenses | hospitals | Maryland | Medicaid | payors

Maryland's unusual hospital rate-setting system is dividing $123 million in expenses for the state's Medicaid program between hospitals and payors, according to the Baltimore Sun.

Reversing its decision last month to divide the costs 50-50, the Health Services Cost Review Commission will make payors cover 70 percent of the costs, involving a rate increase of 0.75 percent, while hospitals pay the remainder out of their operating budgets.

Hospitals protested the original 50-50 formula for the Medicaid expenses, which have been shifted from other state funding sources so that the state budget could be balanced.

Read the Baltimore Sun's report on hospital rates.

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