The state currently faces an expected shortfall of about $85 million to fully fund its Medicaid program in the next fiscal year, due to a surge in Medicaid recipients in the state, according to the report.
This surge, a direct result of the Affordable Care Act, along with the expected revenue decline, has prompted state lawmakers to propose various cuts in Medicaid reimbursements to physicians, hospitals and community providers.
To address the issue, hospital executives have proposed imposing a provider fee on clinics, hospitals, nursing homes and diagnostic services such as radiology that would put additional funds into direct care instead of cutting dollars, according to the report. They contend the fee is an investment that will allow the state to leverage more federal funds, the report notes.
New Mexico is not alone. The vast majority of states now impose a range of fees that scoop up added federal dollars to support the growing Medicaid population, according to the report.
Overall, 41 states impose nursing facility taxes, while 39 states have a hospital fee, according to the report, which cites information from Myers and Stauffer, a firm that provides professional accounting, consulting, data management and analysis services.
In New Mexico, it is unclear if a provider fee could be imposed without a vote of state lawmakers, according to the report
New Mexico Gov. Susana Martinez (R) has been reluctant to move ahead with such a measure without broad-based support from Republicans. Some state lawmakers said there have been discussions and Republicans who control the House of Representatives would consider such a fee if the New Mexico Human Services Department moved to cut spending as well, according to the report.
More articles on finance and revenue cycle management:
How to keep medical bills error free: 3 providers weigh in
Poll reveals widening gap between favorable and unfavorable views of the ACA
Good Shepherd Rehabilitation selects Cerner to implement EHR, RCM solutions
