Hospital-Owned Clinics Face Medicaid Cuts in Washington

The Washington State Hospital Association has been lobbying state lawmakers to kill a budget provision that would cut payments to hospital-owned physician clinics.

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Within the Washington Senate’s budget proposal was a measure that would equalize Medicaid payments to hospital-owned clinics and freestanding clinics for evaluation and management services. Medicaid reimbursement to hospital-owned clinics in Washington includes physician fees as well as a facility fee.

Eliminating the facility fee “would be a huge impact on hospital-owned clinics and their ability to continue to serve Medicaid patients,” the WSHA said.

The WSHA released figures saying Washington hospitals would lose more than $42 million combined if the pay reduction to clinics was passed. Harborview Medical Center and University of Washington Medical Center, the two primary Seattle-based hospitals within UW Medicine, would lose $14.1 million alone, according to WSHA data.

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