Marietta, Ohio-based Memorial Health System is waiting on approximately $80 million in Medicaid supplemental payments pending CMS approval, CEO Scott Cantley told Becker’s.
About $60 million is tied to the Ohio Rural Tax Pilot Program, a state-directed payment program — the first in Ohio created for rural hospitals — that has awaited CMS approval for 15 months. The remaining roughly $20 million comes from Ohio’s 2026 Hospital Additional Payments Program, which Mr. Cantley said has gone unpaid for the first time in his 32 years working in Ohio hospitals.
The delay has stalled financing for Memorial’s Women and Children’s Hospital in Belpre, Ohio. The project broke ground in October 2024 and represents a partnership between Memorial and Akron Children’s Hospital. Mr. Cantley said Memorial counted on the pilot program’s payments to support the debt needed to finish the project. Moreover, he said he cannot ask the board to approve that financing until the funds are approved.
Stephanie O’Grady, chief communications officer at the Ohio Department of Medicaid, told Becker’s the department has supported the federal review process by providing requested information and completing all required submissions. She said the program is currently awaiting CMS action.
“In my opinion, the rural hospitals may be the ones that need the most attention,” Mr. Cantley said. “I think this is the right use of CMS’ Medicaid state-directed payment program, and this is where it should be focused because these are the hospitals that are most vulnerable.”
Ohio’s proposed program relies on county-level funding, similar to Texas, New Jersey and Florida, all of which CMS approved. In September 2026, CMS approved $12 billion in Texas Medicaid funding after months of negotiations.
Mr. Cantley remains optimistic that CMS will approve the pilot program.
“I’m very hopeful that CMS will expedite its review and come to the conclusion we all anticipate — that this is an appropriate payment and one that was filed appropriately by the state of Ohio, approved by the governor, and should be released to be paid to its hospitals,” Mr. Cantley said.
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