Coast Hospitals Challenge Department of Medicaid’s Funding Formula

Memorial, Singing River shorted millions in payments

GULFPORT, MS – The coast’s two largest community healthcare systems announced today their intent to sue the State Division of Medicaid over a flaw in the payment formula that is meant to reimburse community hospitals for care provided to the uninsured and Medicaid beneficiaries.      
Memorial Hospital at Gulfport and Singing River Health System, both public not-for-profit health systems, deliver critically needed care to a large population of patients who are uninsured or covered by Medicaid.  The two hospitals serve as safety nets for inpatient and outpatient services. Some of the costs for caring for these patients are recovered through supplemental payment programs managed by the Division of Medicaid.  Budgeted funds are available at the state level, but the funding formulas used for individual hospitals are flawed.    
In their current form