Governor Steve Beshear's Communications Office
Governor Beshear Responds to Auditor’s Report on Rural Hospitals

Press Release Date:  Monday, March 30, 2015  
Contact Information:  Kerri Richardson
Terry Sebastian

FRANKFORT, Ky. – “Since Kentucky is seen as a national leader in the success of our health care reforms, the administration is well aware of how health care delivery changes are impacting rural hospitals, and we have partnered with those hospitals for the past several years to help them navigate the new health care economy. We’re pleased that the Auditor’s report supports our continuing work.

It’s very important to note that this audit relies on 2013 data, and does not reflect the sea changes in health care since Medicaid expansion began in 2014. As such, the report is a dated snapshot, and those conditions are no longer the same. Hospitals received more than $506 million in 2014 through new Medicaid expansion payments, while seeing significant reductions in uncompensated care costs. Those are huge changes to hospitals’ bottom lines that are not shown here.

Several years ago, we identified challenges for medical providers, and quickly took steps to help them develop new strategies for health care delivery. Thanks to a large federal grant, we have held meetings, organized summits and shared national practices with our hospital partners to design strategies for financially sound business models. That work is ongoing through five work groups of stakeholders.

We remain committed to making sure that Kentuckians have access to affordable, reliable health care, and rural hospitals are an important part of our state’s overall health.” Gov. Steve Beshear