Despite objections from hospitals that serve large numbers of low-income patients, the Senate on Wednesday approved a bill dealing with a new Medicaid payment system for hospitals.
The bill (SB 1520) will help move forward with what is known as the “diagnosis related group,” or DRG system.
Lawmakers approved the system last year, but details still needed to be worked out.
Some of the state’s safety-net hospitals contend that details of the Senate’s DRG plan will cost them tens of millions of dollars, while for-profit hospitals would gain money. That drew concerns Wednesday from senators who represent areas with hospitals that serve large numbers of poor and uninsured people.
But Senate Republican leaders defended the plan, which they said is part of an effort to make the current complicated Medicaid payment system more transparent.
“This was a well thought-out plan,” said Senate Appropriations Chairman Joe Negron, R-Stuart.
The Senate voted 35-4 to approve the bill. But it will become an issue during budget negotiations with the House, which has differences in the way it wants to carry out DRGs.
