Madera Community Hospital’s Medi-Cal Contract to Expire Nov. 26 After Hospital, State Fail to Reach Agreement
Madera Community Hospital's Medi-Cal contract is set to expire Nov. 26 after negotiations between the hospital and state officials failed to produce a reimbursement plan suitable to both parties, hospital administrators announced Friday, the Fresno Bee reports. Hospital administrators and officials from the California Medical Assistance Commission met last week, with the hospital asking for a 25% increase in reimbursements. The two sides remain "from $600,000 to $700,000 apart," according to Robert Kelley, CEO of Madera Community (Leedy, Fresno Bee, 11/17). The hospital's contract has already been extended twice this year to keep negotiations going. Kelley said that the state offered to increase reimbursements "to a level that would have covered last year's Medi-Cal costs." But rising utility and insurance expenses, salary increases and the ongoing nursing shortage have contributed to a 12% increase in the cost to the hospital of treating low-income patients, hospital officials said (Leedy, Fresno Bee, 11/16). Kelley estimated that the hospital lost approximately $650,000 last fiscal year because of "inadequate" Medi-Cal reimbursements (Fresno Bee, 11/17). After the contract expires, Medi-Cal beneficiaries needing emergency room treatment, women in labor and people undergoing outpatient procedures will still be accepted. Madera County currently sees about 450 Medi-Cal patients per month (Fresno Bee, 11/16).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.