UIHC adjusting budgeting to deal with Medicaid denials

UIHC adjusting budgeting to deal with Medicaid denials

University of Iowa Hospitals and Clinics officials say since Medicaid privatization came into play in the state, there’s been an increase of denials for increased care. And that number is more than twice that of the next highest managed care payer.

They say that’s the main reason the hospital’s collection rate has been dropping, and it’s raising concerns about the facility’s budgeting process.

Jean Robillard, the UI’s vice president for medical affairs, told the Iowa Board of Regents on Wednesday other health systems in the state are having the same problem with Medicaid payments and the state needs to resolve the issue.

The collection rate has decreased from 33.9 percent in January to 31.3 percent in March. That doesn’t seem like a huge drop, but Robillard says each percentage drop amounts to about $3.8 million. The hospital says the majority of the drop in revenue comes from Medicaid reimbursements.

The Regents also approved the annual six percent rate hike for the UIHC, the maximum allowed for the hospital. Officials point out even with the increase, the fees they charge are still lower than most other medical facilities.
Tommy Lang