UAMS Fears More Red Ink

As bad as the financial picture at the University of Arkansas for Medical Sciences is now, it could be a lot worse if the state’s hybrid Medicaid expansion plan isn’t continued by the state Legislature. The state’s only academic medical campus is projecting a loss of $13 million for the fiscal year that ends June 30, and that number is projected to grow to $34.2 million in the next fiscal year. Dreams of a hospital expansion have bumped up against financial reality. If the Medicaid expansion isn’t funded, losses could increase by tens of millions of dollars. “We would have to cut programs” if the Medicaid expansion isn’t approved, Dan Rahn, the chancellor of UAMS, told Arkansas Business last week. “We would have no choice.” In a special session last week, the Legislature approved Gov. Asa Hutchinson’s proposal for the Medicaid expansion, which is called “Arkansas Works.” But it faces a hurdle in the regular fiscal session that begins Wednesday. During that session, it will need at least a supermajority vote of 75 percent in the state House and Senate in order to receive funding, thresholds not met in the special session votes. Rahn said he believes the legislation will pass and be funded, but he will be prepared if it isn’t. In the meantime, UAMS in May will ask the University of Arkansas System board of trustees to approve a 10 percent tuition increase for the College of Medicine. If approved, a ye...
Source: Arkansas Business - Health Care - Category: American Health Source Type: news