Governor Bill Graves and Social and Rehabilitation Services Secretary Rochelle Chronister today announced that additional federal funding is available for the hospital closure process. The funding, which comes from the federal Title 19 Medicaid program, totals $4 million and will be submitted this week to the Legislature as a Governor's Budget Amendment.

With these funds identified, the original package of $6.2 million to help deal with concerns related to the closure of state hospitals in Topeka and Winfield remains intact.

The $4 million from Medicaid funding is being substituted for a like amount previously projected to come from federal Disproportionate Share Hospital reimbursement. SRS administrators are still pursing Disproportionate Share Hospital reimbursement, but question whether the money would be available in time to help the closure process in fiscal year 1997.

Chronister praised those program administrators for their work in identifying the Medicaid funding.

Creative minds worked on this issue," Chronister said. We made a pledge to patients and families that we would provide the funding necessary for a smooth closure process, and we are keeping that pledge. With the work done to identify this additional revenue, we do not have to depend on Disproportionate Share funds, which may or may not become available in fiscal year 1997."

A little less than half of the Title 19 Medicaid funding became available because the three state hospitals for persons with developmental disabilities are currently serving more people eligible for federal Medicaid reimbursement than previously budgeted. About 60 percent of the cost for clients eligible for Medicaid is paid by the federal government, and 40 percent by the state.

Another $2.5 million of the Medicaid funding comes as a result of federal audits, which show that in prior years, the federal government did not reimburse the state hospitals for having served more people eligible for federal Medicaid funds.

These funds have become available because we were underpaid by the federal government for services provided both in the past and currently," Chronister said.

The funding identified will combine with $2.2 million already allocated in Governor Graves' 1997 budget, making $6.2 million available to help with the closure process. The revenue sources combined in the package are available only under current federal regulations, and should be considered one-time only funding sources.

Page Last Updated: May 29, 2001