Medicaid is a vital program for patients, communities all across Illinois, and the state’s health care delivery system. The Illinois Hospital Association (IHA) and its more than 200 member hospitals and health systems welcome the opportunity to continue working with the state to strengthen Illinois’ health care delivery system. Illinois hospitals are strongly committed to being an integral part of the process to reform the Medicaid program and health care system, continuing our successful and productive partnership with the state.

• Hospitals are already doing their part to support the Medicaid program and state budget:
• Illinois hospitals pay a tax of $900 million annually under the Assessment Program, which brings the state $900 million in additional federal funding for Medicaid – more net revenue to Illinois than the Lottery.
• The Hospital Assessment Program provides more than $260 million for Medicaid payments to other providers.
• Hospitals agreed to a freeze in outlier payments in January, saving the state $100 million.
• Hospitals are participating in Medicaid rate reform discussions with the Department of Healthcare and Family Services (HFS).
• Hospitals are implementing programs to better coordinate care for patients.
• Hospitals are working to reduce readmissions and improve quality.

Sources of SFY 2012 State Budget Medicaid Hospital Payments

• One-third of Illinois hospitals are already losing money; many won’t survive further cuts.
  
• Health care is one of the few sectors still creating jobs and stimulating the economy during this economic downturn. Hospitals provide more than 425,000 direct and indirect jobs to Illinoisans and generate an economic impact of more than $75 billion annually.