The governor’s proposed changes to the state’s Medicaid program — called MassHealth — are the largest in two decades. The overhaul includes shifting from a fee-for-service model to a value-based one, with hopes the change will level the state’s budget. MassHealth represents 40 percent of the state’s budget, which is growing quicker than state revenue.
However, the Burlington-based Massachusetts Hospital Association said the overhaul will slash hospital reimbursements by more than $150 million per year, according to the report. Hospitals are also worried proposed $11 million per year reductions in safety-net hospital funding could hurt facilities like Salem-based North Shore Medical Center. In addition, hospitals said the changes interfere with contracts between hospitals and providers.
Massachusetts officials are figuring out an agreement with the U.S. government to secure $1.5 billion over the course of five years for the value-based programs.
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