President Kelley is out with a new piece in Medium.
Illinois’ current Medicaid hospital funding formula provides more money to larger, busier hospitals, and less to smaller hospitals with lower patient volumes, even if a higher percentage of patients are on Medicaid or uninsured. The funding structure results in highly profitable hospitals in wealthy, white neighborhoods receiving more government funding than safety net hospitals in Black and brown communities. For example, Northwestern Hospital in downtown Chicago receives seven times as much Medicaid funding as Loretto, even though 84% of Loretto’s patients are insured through Medicaid compared to 20% of Northwestern’s. This is an inequality scandal that is squarely within the rules as designed, but is more harmful to Black and Brown residents of Chicago.