ROCKFORD, Ill. (WTVO) — Mercyhealth says it will no longer accept patients with IlliniCare, Meridian, or Molina Medicaid after 90 days, and Blue Cross Blue Shield Medicaid after six months.
Citing a reduction in income from Medicaid and other health insurance providers, combined with the COVID-19 pandemic, Mercyhealth said it would be instituting reductions of 10% to leadership system-wide, in addition to some physicians.
“While we all know these actions are not easy, we also know we need to make these adjustments in order to adapt to the massive changes to our business,” stated Javon Bea, President/CEO Mercyhealth.
The hospital says it was dealing with financial challenges with Medicaid prior to the COVID-19 outbreak.
The hospital said Wednesday that patients who are subscribers with IlliniCare, Meridian and Molina Medicaid Managed Care Organizations (MCOs) will have 90 days to find other health care providers, doctors and hospitals. Blue Cross Blue Shield Medicaid will have six months.
Mercyhealth will continue to accept those Medicaid patients who are assigned as subscribers tied directly to the State of Illinois Medicaid program.
“We have worked in good faith for several weeks with IlliniCare, Meridian and the other MCOs in an effort to renegotiate contract language that includes acceptable provisions,” said Kim Scaccia, Vice President of Revenue Cycle Management. “Unfortunately we have not been able to reach agreement with them. Therefore, the Mercyhealth agreements with the MCOs will terminate on July 21, 2020 and Blue Cross Blue Shield Medicaid will terminate on October 22, 2020.
Mercyhealth said its losses from Medicaid exceeds $30 million a year.
In addition, the hospital is preparing for an influx of coronavirus patients by reallocating beds from the pediatric ICU and behavioral health centers, expanding its ICU capacity at its Rockton campus to 11 beds. The company says it will be moving 26 beds from the other units to the ICU at the Riverside campus.