A subcommittee within the Michigan House of Representatives is considering the approval of two proposals that would more equally distribute "disproportionate share payments," or governmental funds to make up for a hospital's uncompensated and Medicaid care, according to a Crain's Detroit Business report.
Four hospitals within Detroit Medical Center, a for-profit system bought by Nashville, Tenn.-based Vanguard Health Systems last year, receive roughly $30 million of the $37.5 million allocated to the 28 largest providers of uncompensated and Medicaid care, according to the report. However, those hospitals only provide a quarter of that care.
In comparison, Detroit-based Henry Ford Hospital receives $670,220 per year but provides 7.5 percent of indigent care in Michigan, according to the report. The University of Michigan Health System in Ann Arbor, Mich., provides 9 percent of the state's indigent care but receives no disproportionate share payments.
The House is considering two proposals to see if the state should create more funding for disproportionate share payments or if existing funds should be redistributed. One of the proposals in the House would create a new $25 million disproportionate share fund for certain hospitals that are not currently eligible under the existing fund, and the other would simply shift millions of dollars away from DMC and Flint, Mich.-based Hurley Medical Center to 23 other hospitals, according to the report.
The subcommittee will conduct hearings over the next month to see which proposal will provide the most benefit to the underserved hospitals.
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Four hospitals within Detroit Medical Center, a for-profit system bought by Nashville, Tenn.-based Vanguard Health Systems last year, receive roughly $30 million of the $37.5 million allocated to the 28 largest providers of uncompensated and Medicaid care, according to the report. However, those hospitals only provide a quarter of that care.
In comparison, Detroit-based Henry Ford Hospital receives $670,220 per year but provides 7.5 percent of indigent care in Michigan, according to the report. The University of Michigan Health System in Ann Arbor, Mich., provides 9 percent of the state's indigent care but receives no disproportionate share payments.
The House is considering two proposals to see if the state should create more funding for disproportionate share payments or if existing funds should be redistributed. One of the proposals in the House would create a new $25 million disproportionate share fund for certain hospitals that are not currently eligible under the existing fund, and the other would simply shift millions of dollars away from DMC and Flint, Mich.-based Hurley Medical Center to 23 other hospitals, according to the report.
The subcommittee will conduct hearings over the next month to see which proposal will provide the most benefit to the underserved hospitals.
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