Factors Affecting the Development of Medicaid Hospital Payment Policies: Findings from Structured Interviews in Five States

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October 2018

MACPAC contracted with Health Management Associates to better understand how states develop their hospital payment policies. We interviewed state, hospital, and managed care representatives from five states that vary in their use of supplemental payments and financing approaches (Arizona, Louisiana, Michigan, Mississippi, and Virginia). Key findings from the study include:

  • the availability of financing for the non-federal share of Medicaid payments has affected states’ use of base and supplemental payments;
  • the use of Medicaid managed care has not substantially affected Medicaid payments to hospitals; and,
  • the adoption of prospective payment systems and value-based payment models is slow.

MACPAC presented this information at its September 2018 Commission meeting.

Publication Type: Contractor Reports

Tags: financing, hospitals, managed care, Medicaid and other payers, payment, supplemental payments