Briefs & Reports

MACPAC Contracted with HMA to Better Understand How States Develop their Hospital Payment Policies

The Medicaid and CHIP Payment and Access Commission (MACPAC)

Principal Thomas Marks
Principal Kathy Gifford
Managing Principal Steven Perlin
Senior Consultant Melisa Byrd
Consultant Timothy Beger

Health Management Associates was contracted by MACPAC to better understand how states develop their hospital payment policies. State, hospital, and managed care representatives from five states that vary in their use of supplemental payments and financing approaches (Arizona, Louisiana, Michigan, Mississippi, and Virginia) were interviewed. The three key findings from the study include:

  1. The availability of financing for the non-federal share of Medicaid payments has affected states’ use of base and supplemental payments;
  2. The use of Medicaid managed care has not substantially affected Medicaid payments to hospitals; and,
  3. The adoption of prospective payment systems and value-based payment models is slow.

MACPAC presented this information at its September 2018 Commission meeting.

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