Hospital assessment asked to help pay Medicaid care costs

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Allegiance Health Management representatives asked the St. Landry Parish Council to approve a tax on Acadian Medical Center.
Allegiance is the owner of the Eunice hospital.
The tax, also termed assessment during the Council Adminstrative-Finance Committee meeting in Opelousas on Wednesday, is intended to enhance the federal reimbursement for care given to Medicaid patients.
“There are 50 some odd rural hospitals in Louisiana who get cost-based reimbursement for their Medicad. Unfortunately, the hospital in Eunice is not one,” said Gregory Frost, an attorney representing Allegiance.
The legislature approved a method that will reimburse the hospital for its costs associated with the care of medicaid patients, Frost said.
Medicaid care is funded with that state paying a $1 and the federal government paying $2 to hospitals.
The parish is being asked to create a taxing district in which the hospital will pay an assessment of 3% to 4% on its net patient revenue. The assessment can be no more than 6% of net patient revenue.
Kevin Frank, chief executive officer of Acadian Medical Center, said the hospital’s net patient revenue is about $24 million.
The sheriff will be paid a 1.5% fee to collect the money.
The parish government will collect 5% to administer the fund.
Frost said the legislation is for parishes with at least two qualifying hospitals and that would include St. Landry Parish, which was Acadian Medical Center, Oceans Behavior and LHC group, he said.
The plan is to include Mercy Regional Medical Center in Ville Platte in a district because it is the only qualifying medical facility in Evangeline Parish, Frost said.
A separate fund would be established with the Evangeline Parish Police Jury.
An agreement would be made with state Department of Health, which would get the federal government to approve higher reimbursements.
The legislation prevents passing on any costs to patients, he said. The legislation would be like an income tax on the hospitals to help the state pay for the cost of Medicaid care, he said.
Hospitals established by government action, such as Opelousas General Health Care System, are eligible for the reimbursement, but don’t have do it as a tax, he said.
The Council committee authorized Parish President Jessie Bellard and attorney Garret Duplechain to write ordinances for the assessment and district.
Wayne Ardoin, committee chairman, established that the action would not cost the parish.
Allegiance representatives were at an Evangeline Parish Police Jury meeting on Nov 2 with the same proposal.