In addition to the change to the DSH payments’ formula, the hospital also reached the Upper Payment Limit — a cap on the total Medicaid reimbursement the state can pay a particular provider organization. LouAnn Woodward, vice chancellor for health affairs at UMMC and dean of the School of Medicine, told The Clarion-Ledger UMMC hit the cap due to the new DSH payment formula applying an inflation rate to Medicaid payments, despite hospitals’ Medicaid reimbursement rates not increasing.
Because of the reduction in Medicaid funding, UMMC will make major cuts over the next several months, which could include the elimination of programs and layoffs, according to the report.
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