SPRINGFIELD, Ill. (WBBM NEWSRADIO) -- The Illinois Department of Healthcare and Family Services (HFS) announced Tuesday Illinois hospitals have begun receiving $75 million in new stability payments to help fight COVID-19.
HFS said the funds will help hospitals continue to provide essential COVID-19 services to their communities in the coming weeks and months.
“We recognize that hospitals on the front lines against COVID-19 need support and they need it now,” said Theresa Eagleson, HFS director, in a statement. “We’re incredibly thankful to the medical professionals who are serving Illinoisans during this public health crisis, and we are committed to doing all we can to help them.”
The state said stability payments are being issued in installments until July 1, 2020 through the state’s Medicaid Managed Care Organization (MCO) partners. Hospitals began receiving the first installments in late April.
“This added support to face the COVID-19 crisis and the aftermath will be crucial to communities that are at the front lines of the fight,” said Senator Kimberly A. Lightford, Senate Majority Leader and Joint Caucus Chair of the Illinois Legislative Black Caucus, in a statement. “Hospitals are vital not only for healthcare but as engines of economic opportunity and jobs. We must continue providing the resources they need for their staff, their patients and their surrounding neighborhoods.”
To offer further support, a bipartisan working group created last year to extend the Hospital Assessment Program has agreed to a proposal that would bring nearly $250 million more dollars annually to hospitals throughout the state. This will maximize federal participation in Medicaid and move to a more dynamic payment system that is responsive to the needs of individual member decisions on where to seek care.
“Hospitals perform a central role in every community throughout our state,” said Senator Heather Steans, in a statement. “The importance of hospitals has never been higher, so our support should be stronger, especially for hospitals relying more on state Medicaid resources for funding. I’m pleased that we all came together in a bipartisan manner to accomplish this goal.”
Officials said the Department has submitted the proposal to the federal government and advocated for quick approval to solidify the future for hospitals across the state.
"With this proposal, we ensure that more Medicaid dollars will come into Illinois, with vital support being directed to those who are most in need,” said Senator Dave Syverson, Senate Republican Leader., in a statement “As Illinois continues to fight COVID-19, this strong hospital assessment program will provide much needed resources to those who have been indispensable to all of us and who will continue offering such essential protection and care in the future."
Overall, $3.8 billion would be provided to hospitals through the renewed assessment program. In addition to the additional funding, $150 million would be offered to hospitals for innovative future healthcare projects under guidelines that are being developed.
With authorization from the General Assembly and approval from the federal government, the new program would operate from July 1, 2020 until the end of 2022.