In July, a group of more than 65 freestanding behavioral health facilities in the state formed an association, with the goal of increasing Medicaid rates and expanding outpatient services covered by the state’s Medicaid program.
Texas is planning a $2.5 billion expansion of its state psychiatric hospital system. As the state invests in public hospitals, private hospitals are pushing for higher reimbursement.
The state has not increased Medicaid rates since 2008, and decreased rates in 2011. According to the Tribune, private inpatient psychiatric hospitals are paid around $529 per day for each Medicaid beneficiary.
Elan Eaks, CEO of Corona, Calif.-based Signature Health Services, which operates five hospitals in Texas, told the Tribune care for patients costs between $700 and$900 a day.
“We’re 90% full and we’re losing money,” Mr. Eaks said. “That’s why we’re sounding the alarm. We really are the safety net.”
Psychiatric hospital leaders met with state health officials last year, the Tribune reported, but it is not yet clear whether they will offer a rate increase.
Read more here.