Louisiana will distribute $83 million to 27 private hospitals that care for needy patients through its Low-Income and Needy Care Collaboration Program, a program approved by CMS last November, according to a news release by Gov. Bobby Jindal.
LINCCA agreements between private hospitals and public state and local hospitals and hospital districts allow private hospitals to take on services for low-income and needy patients with federal funds, which frees up local and state funding. The money can be used to maximize available federal matching funds through the Upper Payment Limit program in Medicaid or to help fund the Medicaid program.
Under the LINCCA program, a public entity, such as a local public hospital district, an LSU hospital or even the state Department of Health and Hospitals, partners with a private entity to take over the costs of providing services to low income and needy patients.
Gov. Jindal said of the program, "We know we must rethink how government works and must be innovative in our approaches. This program is the definition of innovation at work in our healthcare system. While other states are slashing hospital funding in reaction to the national crisis in Medicaid, we're here today giving hospitals $83 million in funding while ensuring increased and continued access to care because we understand that you can really do more with less when you work smarter and collaborate between the public and private sectors."
Gov. Jindal also announced that the state has developed a supplemental UPL program for physicians, which will make its first set of payments totaling about $2.8 million this week. Under this program, physicians who are employed by or contract with public hospitals not owned by the state are eligible for UPL supplemental physician payments. Supplemental payments will be the difference between the average commercial rate and the Medicaid rate, in addition to the usual Medicaid payment—essentially allowing payment for a Medicaid patient to equal the average commercial rate. DHH estimates that about $10 to $15 million could be paid out through this program annually.
Read the release on Louisiana's Low-Income and Needy Care Collaboration Program.
Read more coverage on Louisiana hospitals:
- Louisiana's Ochsner Health Names CEOs for West Bank, North Shore Hospitals
- Louisiana Parish Seeks Partner to Develop Hospital
LINCCA agreements between private hospitals and public state and local hospitals and hospital districts allow private hospitals to take on services for low-income and needy patients with federal funds, which frees up local and state funding. The money can be used to maximize available federal matching funds through the Upper Payment Limit program in Medicaid or to help fund the Medicaid program.
Under the LINCCA program, a public entity, such as a local public hospital district, an LSU hospital or even the state Department of Health and Hospitals, partners with a private entity to take over the costs of providing services to low income and needy patients.
Gov. Jindal said of the program, "We know we must rethink how government works and must be innovative in our approaches. This program is the definition of innovation at work in our healthcare system. While other states are slashing hospital funding in reaction to the national crisis in Medicaid, we're here today giving hospitals $83 million in funding while ensuring increased and continued access to care because we understand that you can really do more with less when you work smarter and collaborate between the public and private sectors."
Gov. Jindal also announced that the state has developed a supplemental UPL program for physicians, which will make its first set of payments totaling about $2.8 million this week. Under this program, physicians who are employed by or contract with public hospitals not owned by the state are eligible for UPL supplemental physician payments. Supplemental payments will be the difference between the average commercial rate and the Medicaid rate, in addition to the usual Medicaid payment—essentially allowing payment for a Medicaid patient to equal the average commercial rate. DHH estimates that about $10 to $15 million could be paid out through this program annually.
Read the release on Louisiana's Low-Income and Needy Care Collaboration Program.
Read more coverage on Louisiana hospitals:
- Louisiana's Ochsner Health Names CEOs for West Bank, North Shore Hospitals
- Louisiana Parish Seeks Partner to Develop Hospital