SPRINGFIELD -- Gov. Rod R. Blagojevich today announced that he would sign legislation that establishes a new three-year Hospital Assessment Program that generates $600 million each year for the next three years in new federal funding to support critical health care and Medicaid services throughout Illinois. This new program replaces the current hospital assessment program that provides $430 million in federal funding and sunsets on July 1, 2005.
“No matter how tough the state’s fiscal challenges are, we have to continue to protect our investments, build on our successes and fight to provide healthcare for more working parents and children. This new hospital assessment program helps our hospitals help people who otherwise wouldn’t have access to health care,” said Governor Rod Blagojevich. “I want to thank U.S. House Speaker Denny Hastert (R-Illinois) for his leadership and continued support. I also want to thank Senator Jeff Schoenberg (D-Evanston) for once again negotiating a creative solution that respects the needs of health care providers and addresses our state’s fiscal reality and to the four legislative leaders and the legislature for working with my office to pass this bill.”
Senate Bill 157, was sponsored by state Sen. Jeff Schoenberg (D-Evanston). The measure creates a new, three-year assessment on Illinois hospitals. The hospital assessment program is a federally permissible method for states to leverage more federal money into their state healthcare systems. Revenue generated by the assessment will boost the amount the state receives in matching funds from the federal government. If approval is secured from the federal government, Illinois will leverage additional federal resources of $600 million for the state’s health care network. Hospitals will receive increased payments of $470 million. Additionally, the state will receive $130 million for help with its other health care needs such as funding for nursing homes, mental health, developmental disabled and further paying down the Medicaid payment cycle.
“I applaud Governor Blagojevich for his continued commitment to provide accessible, affordable and quality healthcare in our state with this bill,” stated Senator Schoenberg. “Because this new hospital assessment program is larger in scope and is even more effective at directing resources to the greatest needs, we can better ensure that hospitals and other health care providers are able to continue to deliver quality services to Illinois residents.”
“This new hospital assessment program is a wonderful partnership between Governor Blagojevich, the Illinois Department of Public Aid and the hospital community. It will bring much needed resources to hospitals and other healthcare providers. Patients all across Illinois will benefit,” said Howard Peters, Senior Vice President of the Illinois Hospital Association (IHA).
“This legislation is an outstanding example of how the elected leadership of the state has come together with the hospital community to create new resources that will allow hospitals like Mount Sinai to continue to meet their mission of caring for the most vulnerable in our community. The plan that was crafted by the Blagojevich administration and the Illinois Hospital Association is both fair and distributive of the new dollars that the federal government will be adding to the State’s Medicaid budget. This infusion of resources will support the provision of critical health care services in our most challenged communities. I want to thank Governor Blagojevich for his continued commitment to have access to healthcare as a top priority in his administration,” said Alan Channing, CEO and President of Mt. Sinai Hospital.
“OSF Health Care System operates five hospitals in north and central Illinois and we are grateful to Governor Blagojevich and the General Assembly for passage of the new hospital assessment program. The assessment program will bring millions of new Medicaid dollars to our system, which are critical for us to meet the needs of our patients,” said Fred Kalsbeek, Director of OSF.
“Children's Memorial Hospital applauds Governor Blagojevich and the General Assembly for their leadership in passing essential Medicaid funding through the provider assessment legislation. This legislation is critical to securing millions of dollars in much needed Medicaid funding for children and families in Illinois. We urge the federal government to move swiftly in approving the plan,” said Patrick M. Magoon, President and CEO, Children’s Memorial Hospital.
“This plan builds on the success of last year’s assessment program and reinforces Governor Blagojevich’s commitment and strong record of providing access to quality healthcare at a reasonable cost for working families,” said Barry S. Maram, the Director of the Department of Public Aid, which runs the state’s Medicaid system.
The Kaiser Commission on Medicaid and the Uninsured singled out Illinois as one of only three states in the nation to significantly expand health coverage in 2003, at a time when budget constraints forced many states to slash access to health care.
The Blagojevich Administration in 2003 expanded the KidCare program to cover an additional 20,000 children, and the FamilyCare program for parents and caretakers of children in KidCare to cover an additional 65,000 people. In fiscal year 2006, the administration’s proposed budget again expands FamilyCare to provide healthcare for another 54,000 working parents.
Overall, Illinois has added over 300,000 more children and parents to its Medicaid, KidCare and FamilyCare programs in the first three years of the Blagojevich Administration.
Below is the amount of funding each region will receive as result of the new hospital assessment program. Included are hospitals that will receive some of the largest increases for their area.
Chicagoland – Over $300 million with an increase of $109 million
Northwestern Memorial (Chicago) -- $17 million, an increase of $6.4 million
Mount Sinai (Chicago) -- $14.5 million, an increase of $10.4 million
Children’s Memorial (Chicago) -- $13.6 million, an increase of $6.2 million
Christ Hospital (Oak Lawn) -- $12.4 million, an increase of $13 million
Quad Cities/Rockford – $33 million with an increase of $16 million
Trinity Medical Center (Rock Island) -- $5.9 million, an increase of $3.4 million
Freeport Memorial (Freeport) -- $2.1 million, an increase of $400,000
Swedish American (Rockford) -- $9.6 million, an increase of $5.3 million
Peoria – Nearly $15 million with an increase of $6 million
St. Francis Medical Center (Peoria) -- $5.3 million, an increase of $3.8 million
Children’s Hospital of Illinois (Peoria) -- $5.2 million, an increase of $2.1 million
Central Illinois – $77 million with an increase of $32 million
St. John’s Children’s Hospital (Springfield) -- $5.9 million, an increase of 3.7 million
Memorial Medical Center (Springfield) -- $5.5 million, an increase of $4.4 million
Carle Foundation Hospital (Urbana) -- $4.4 million, an increase of $2.5 million
Metro East –$33 million with an increase of nearly $13 million
Touchette Regional (Centreville) -- $7.2 million, an increase of $5.4 million
Memorial Hospital (Belleville) -- $4.7 million, an increase of $4.2 million
Cardinal Glennon Children’s (St. Louis) -- $2 million, an increase of $1 million
St. Louis Children’s (St. Louis) – $1.9 million, an increase of $900,000
Southern Illinois – $27.5 million with an increase of $8.3 million
Provena United Samaritan (Danville) -- $5.5 million, an increase of $4.1 million
St. Mary’s (Centralia) -- $4.2 million, an increase of $1.9 million
Memorial Hospital (Carbondale) -- $4.1 million, an increase of $58,000Blessing (Quincy) -- $2.6 million, an increase of $1 million