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Legislation reimbursing Critical Access Hospitals advances

SPRINGFIELD, IL State Senator Gary Forby (D-Benton) today advanced a measure through the Illinois State Senate that focuses on the problem of Medicaid reimbursement to Critical Access Hospitals.

The measure requires Critical Access Hospitals be reimbursed for outpatient Medicaid services based on cost and seeks to obtain matching federal funds for the reimbursement payments. The proposal will have a significant impact on the smaller rural hospitals located throughout Southern Illinois where many Critical Access Hospitals are several miles from the nearest medical facility and serve large sections of the state.

"Right now, there are 51 Critical Access Hospitals in Illinois that provide care to some of the state’s most vulnerable citizens, particularly seniors," Senator Forby said. "We need to reimburse these hospitals so they can stay open and available. They are especially important to our Southern Illinois communities because they provide vital services to such large areas of the state."

According to Mike Budnick, business development officer for Franklin County Hospital, nearly 40 percent of people in Illinois live in communities served by Critical Access Hospitals.

The Critical Access Hospital (CAH) Program was created by the Federal Government in 1997 as a health care safety net to ensure that Medicare beneficiaries have access to needed services in rural areas. The Illinois Hospital Association says that Critical Access Hospitals typically only receive about 74 percent of the actual cost of care for Medicaid patients. This bill intends for the state to obtain matching federal funds that will pay half of what it costs to ensure hospitals are getting paid for their services.

"Communities with Critical Access Hospitals depend on them for jobs," Senator Forby said. "They do more than just provide health care services. They are a major source of employment for some of our state’s smaller communities. If any of these hospitals shut down, the economic impact would be devastating and set our state back even further."

Senate Bill 3264 now moves to the House of Representatives where it awaits a vote.

Senator Gary Forby


59th District

Years served:
2001-2003 (House); 2003 - Present (Senate)

Committee assignments: Committee of the Whole; Insurance; Labor (Chairperson); Telecommunications & Technology; Transportation; Consumer Protection; Trans. Subcommittee on Amendments (Sub-Chairperson).

Biography: Born January 4, 1945, in Anna, Illinois. Full-time state legislator; former farmer and businessman; past chairman, Franklin County Board; former member, Franklin - Williamson Human Services Board; current member, Southern Illinois Workforce Man-Tra-Con Board, Operating Engineers and Laborers' International unions.

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