State announces SHOPP hospitals to receive additional $52 million before end of December

Posted on: 12/16/22

On Thursday, the governor’s office and the Oklahoma Health Care Authority released news that Oklahoma hospitals participating in the state’s Medicaid Supplemental Hospital Offset Payment Program (SHOPP) will receive an additional one-time payment of $52 million next week. The disbursement will be based on current SHOPP allocations, except for critical access hospitals whose reimbursement is based on 101% of costs. Read the governor’s press release.

Because of an increased upper payment limit due to Medicaid expansion along with the current enhanced FMAP rate and an increase in the market basket, OHCA determined that monies were available to assist our hospitals during this tight financial period. This will appear on SHOPP hospitals’ Medicaid payment remittance on December 21.

As shared with members last month, the Oklahoma Hospital Association commissioned a study by Kaufman Hall that was released to OHA member hospitals during Connect 22. The study highlighted the impact of COVID-19 on hospital finances, comparing 2019 data and trending forward through September 2022. Bottom line, with no federal funding package in sight, hospitals in Oklahoma are facing dire financial consequences because of higher expenses, particularly workforce costs. And earlier this week, OHCA announced that the Medicaid managed care deadlines would be delayed by six months due to more time needed by CMS for approval.

OHA’s press statement in response to Thursday’s announcement is available here. This is good news, but our collective voices will be required to continue to push the need for gap funding.