Gov. Tate Reeves vetoed a bill Thursday that would help stabilize hospitals, calling it the “Grady Twin” of a bill he vetoed in March. 

Lawmakers made some changes to the previously vetoed legislation in a new bill, but kept much the same. Reeves cited many of his same concerns this time around, including alleged contradictions and the loom of a deficit. 

The bill, authored by Senate Medicaid Chairman Kevin Blackwell, R-Southaven, sought to make several changes to the Medicaid program — from mandating providers screen mothers for postpartum depression to requiring the agency to cover a new sleep apnea device. 

Arguably the largest impact of Senate Bill 2386 would have been that it called for locking in place supplemental payment programs that have been a lifeline for hospitals — but which are unreliable as they vary from year to year, according to Richard Roberson, CEO of the Mississippi Hospital Association. That fluctuation makes it difficult for hospitals to plan what services they can offer. 

“The supplemental payment language was intended to offer better budget predictability as hospitals move through these uncertain times and instructed the Division (of Medicaid) to maximize federal funding,” Roberson said. “… Hospitals, like other businesses, need stability to continue to serve their communities effectively.”

Supplemental payment programs bring in around $1.5 billion federal dollars to Mississippi hospitals each year. 

Reeves said in his veto statements for both bills that locking the payment program in place is in contradiction with another of the bill’s mandates, which would change the program to allow out-of-state hospitals that border Mississippi to participate in the program. 

“It is logically nonsensical for Senate Bill 2386 to, on the one hand, freeze the MHAP, while on the other hand, mandate that the Division open the program to include an additional hospital.”

But Roberson said the language of the bill would not prohibit the programs from growing — it would merely clarify what hospitals need to do to get paid. 

Reeves again said the bill “seeks to expand Medicaid.” The bill brings forth code sections related to eligibility requirements, but it doesn’t call for expanding the Medicaid population by increasing the income threshold, which is what is typically referred to as Medicaid expansion under the Affordable Care Act.

Thursday’s vetoed bill was hospitals’ last recourse for stabilizing their budgets via legislation. 

Richardson says the Mississippi Hospital Association has now turned its sights toward the Division of Medicaid to secure hospitals’ payment programs without the help of the Legislature. 

“With or without Senate Bill 2386, we are hopeful the Division will work to stabilize the model,” Roberson said.