Mississippi hospital to sell, lease mental health unit due to underpayments

Memorial Hospital at Gulfport (Miss.) plans to sell or lease its mental health services due to reduced Medicaid payments that the hospital claims are insufficient to sustain operations, reports Mississippi Public Broadcasting.

Memorial CEO Gary Marchand told MPB Medicaid underpays the hospital about $10 million a year for mental health services. The state began reducing Medicaid mental health payment rates in 2013, according to the article.

Mr. Marchand said Memorial will hire a consultant to oversee either the sale or long-term lease of its mental health unit, according to MPB.  

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