Kansas hospitals to receive $341 million annually

TOPEKA, Kan. (WIBW) - Kansas hospitals will receive $341 million each year thanks to new enhancements to an old program.

Kansas Governor Laura Kelly says that the Sunflower State has been given federal approval to enhance the Health Care Access Improvement Program and bring $341 million into the state each year - at a time when hospitals are financially vulnerable. She said the additional funds will boost Medicaid payments to hospitals and help maintain the state’s hospital networks.

“This is a huge win for our rural hospitals, for our health care workers, and for more affordable health care in Kansas,” Kelly said. “I want to thank Senator Moran, Representative Davids, and the rest of the federal delegation for working with my administration to secure this critical funding. Next, we must expand Medicaid here in Kansas to further strengthen our healthcare workforce and increase access to care for all Kansans.”

Gov. Kelly noted that the announcement follows more than three years of bipartisan advocacy and efforts at the state and federal levels.

“Kansas hospitals appreciate the efforts of our state and federal leaders to obtain approval for a program that will help support hospitals’ ability to provide care to all Kansans,” Chad Austin, President and CEO of the Kansas Hospital Association said.

Kelly indicated that HCAIP historically imposed an assessment on inpatient revenues for most Kansas hospitals. In 2020, she said the Kansas Legislature increased the provider assessment and expanded the scope of the assessment to include outpatient services.

“We are thankful for the diligent work from our Medicaid leadership team, congressional delegation and appreciate our strong and collaborative relationship with the hospital leaders in Kansas,” Secretary Janet Stanek, Kansas Department of Health and Environment, said. “We also want to thank our federal Medicaid partners and the Centers for Medicare and Medicaid Services. This important program would not be possible without their support.”

The Governor said that funds drawn down through a federal match program are crucial to increasing and improving access to care and to help reduce health disparities in rural and minority populations.