State Postpones Payments to Hospitals Until September

By: Associated Press
By: Associated Press

LANSING, Mich. (AP) -- The Michigan's government budget problems have led the state to postpone to September about $54 million in payments to hospitals that were expected in April and July.
The late payments have not posed serious problems, hospital finance officers told the Detroit Free Press for a Saturday story.
"Any time a payer delays payment, it is detrimental," said Tom Salisbury, director of revenue integrity for Holland Hospital. The 213-bed hospital in Holland is awaiting $70,000 in payments.
The state plans to pay the money Sept. 26.
In fiscal 2007, the Michigan Department of Community Health will distribute to hospitals $196 million for graduate medical education and $50 million for those serving a disproportionate share of poor patients.
So far, Michigan has given out $162 million in graduate education money and $30 million for service to poor people, according to Brian Keising, manager for hospital regulations and reimbursement for the health department.
T.J. Bucholz, spokesman for the Michigan Department of Community Health, said: "At a time when the state is facing a $1.8-billion fiscal crisis ... we have worked hard to maintain these funds. Our full intent is to make the additional payments."
Hospitals aren't the only ones to see delays in funding. The state delayed payments to universities and community colleges, for example, as part of an effort to close a hole in the current fiscal year's deficit.


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