The Oklahoma Health Care Authority (OHCA) Board has approved a plan for the distribution of $200m in funds appropriated by the Legislature to support hospitals in the US state.
Developed in collaboration with a statewide hospital association, the methodology increases the available funds to more than $285m and will prioritise hospitals most at risk.
The disbursement plan includes creating a $25m pool for vulnerable hospitals with negative operating margins and limited cash reserves.
A further $150m will be allocated proportionally based on total Medicaid payments, similar to the existing Supplemental Hospital Offset Payment Program (SHOPP) methodology.
The remaining $25m will be used to withdraw federal matching funds and expedite a new Medicaid hospital payment programme based on commercial reimbursement levels, subject to approval from the Centers for Medicare and Medicaid Services (CMS).
The funding is intended to reduce the financial burden on Oklahoma hospitals.
Oklahoma Hospital Association president and CEO Rich Rasmussen said: “The Oklahoma Hospital Association appreciates the collaborative approach OHCA has used in developing this methodology for distributing the one-time funding appropriated by the Legislature.
“We believe this approach addresses the concerns of hospitals as all organisations have experienced various levels of financial stress.”
The disbursements are expected to begin next month, with most payments to be distributed at that time, while the remaining payments are due to be disbursed in April next year.
Under Senate Bill 32x, the OHCA must submit a methodology for disbursing the funds to the Senate Appropriations Committee Chair and House of Representatives Appropriations and Budget Committee Chair by 31 July.
Senate Appropriations and Budget Chairman Roger Thompson said: “The Legislature recognised the staggering needs facing Oklahoma’s hospitals and prioritised making a meaningful investment.
“OHCA’s thoughtful approach utilises federal funds to maximise the impact to both rural and urban hospitals.”
