Egan says Roseland Hospital could lose $6.6 million if the hospital assessment program is shut down

1/17/2018, noon | Updated on 1/17/2018, noon
“Time is running out and folks need to come to the table,” Jones said. “They know where we need to ...
Illinois State Representative Robert Rita (left), Illinois State Senator Emil Jones III (centered) and Tim Egan, president of Roseland Hospital (right) recently shared with the Citizen that Roseland may be shut down if the Illinois Hospital Assessment program isn’t reinstated by Gov. Bruce Rauner by June 30, 2018. Photo Credit: Christopher Shuttlesworth

Egan says Roseland Hospital could lose $6.6 million if the hospital assessment program is shut down

By Christopher Shuttlesworth

For more than a decade, Illinois has used the hospital assessment

program to funnel billions of dollars to help fund Medicaid services to

the state’s poorest residents at hospitals in Chicago and statewide.

But the hospital assessment program may go away for local hospitals like Roseland if Governor Bruce Rauner doesn’t reinstate the program by June 30, 2018.

Safety-net hospitals employ 25,000 people statewide and the

hospital assessment program generates $4 billion dollars each year

for hospitals, according to the Association of Safety-Net Community


Tim Egan, president of Roseland Hospital explained that Roseland Hospital, which he calls the “economic engine of the community,” could lose $6.6 million if the hospital assessment program is shut down, adding, the hospital still needs an additional $10 million

to keep operations running. “To say that we’re not a safety-net hospital is immoral,” Egan said.

Illinois State Representative Robert Rita said the Roseland Hospital has struggled financially over the years, but has managed to work everything out until now.

“If this hospital shuts down, this would be devastating to the community,” Rita said. “Where would someone in a seven-mile radius

go? Then you look at the employees who live in the community would

lose their jobs.”

Illinois State Senator Emil Jones III said ironically, the state of Illinois recently identified $200 million in additional funding that can

be distributed to Medicaid hospitals like Advocate Hospital.

“They’re taking away from the poor hospitals and giving to the

rich hospitals,” Egan said. “It doesn’t make any sense that anything would be cut from any safety-net hospital. Why would you cut if you’re

bringing in $200 million more?”

Egan continued to explain that outside experts researched and

found that the state of Illinois can distribute an additional $300 million, resulting in a pool of $500 million for the Illinois Hospital

Assessment program. Yet, money is still being taken away from

hospitals like Roseland, which may be shut down, he said.

On Sept. 18, 2017, the Illinois Health and Hospital Association

(IHA) shared preliminary hospital data for its most recent assessment

model. In the most recent model, Roseland Hospital loses more than

$19 million in assessment payments. The reduction to Roseland Hospital and other similar safety net hospitals is due to the fact that

the data IHA is using in its new model to formulate payments does

not include Managed Care Organization (MCO) denials or settlements

between hospitals and managed care organizations, according to House Bill 4099.

Therefore, the data shared by the IHA is, according to the safetynet

hospitals, up to 30 percent inaccurate. The large reduction to Roseland Hospital would result in the hospital closing in a matter of weeks.

“Just to cut almost $20 million out of their budget would completely devastated this hospital,” Jones said. “If I have to camp out here 24/7 to prevent Roseland Hospital from shutting down, I would.”

Jones explained that a bi-partisan task force has been established

to work with IHA and state agencies to form a better formula, but the

numbers that IHA presented to the task force in November were still


He continued to say that he believes at this point, Governor Bruce Rauner needs to get involved like previous Governors who understood what Roseland hospital meant to the community and to the community’s economic development.

“Time is running out and folks need to come to the table,” Jones

said. “They know where we need to be and they know exactly what they need to do. They just need to agree and do it.”

John Hoffman, communications director for the Illinois Department of Healthcare and Family Services, said safety net hospitals have always been an important part of the department’s mission to provide healthcare access in struggling communities and will continue being part of the evolving healthcare delivery system in Illinois.

“Our overall goal for the program going forward should be to ensure that payments to hospitals follow services for Medicaid beneficiaries,” Hoffman said. “Dollars should be invested in a way that makes sure quality care is provided to those with limited resources, regardless of where they live.”