Barbourville, Ky.-based Knox County Hospital did not have enough cash on hand last week, resulting in some employees not being able to cash their paychecks, according to a Times-Tribune report.
"We didn't have enough money in the bank and didn't bounce their checks; the banks just refused to cash them," said Knox County Hospital CEO Craig Morgan in the report. "But by Saturday morning, it was there."
Mr. Morgan cited the state's Medicaid managed care program as the main cause for the cash flow problem. Medicaid managed care replaced the original Medicaid program in Kentucky last November. He said there are now three managed care organizations the hospital has to bill instead of one, and the hospital wasn't prepared for the extra billing.
"The money was slow getting in here," Mr. Morgan said in the report. "It's been a nightmare. We got about $4,000 from [Medicaid managed care companies] last week, and we needed $50,000 to $75,000." He said before the switch, the hospital was consistently receiving $100,000 per week from Medicaid.
"We didn't have enough money in the bank and didn't bounce their checks; the banks just refused to cash them," said Knox County Hospital CEO Craig Morgan in the report. "But by Saturday morning, it was there."
Mr. Morgan cited the state's Medicaid managed care program as the main cause for the cash flow problem. Medicaid managed care replaced the original Medicaid program in Kentucky last November. He said there are now three managed care organizations the hospital has to bill instead of one, and the hospital wasn't prepared for the extra billing.
"The money was slow getting in here," Mr. Morgan said in the report. "It's been a nightmare. We got about $4,000 from [Medicaid managed care companies] last week, and we needed $50,000 to $75,000." He said before the switch, the hospital was consistently receiving $100,000 per week from Medicaid.
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