Committee advances bill to equalize Medicaid rates for independent rural health clinics
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Summary
House Bill 9‑71 would require Louisiana Medicaid to equalize reimbursement rates between independent rural health clinics and hospital‑owned, provider‑based rural clinics. Clinic owners testified that current disparities force closures and consolidation; the committee reported the bill favorable to proceed to appropriations.
House Bill 9‑71, introduced by Representative Stagney, would direct the Louisiana Department of Health to set Medicaid reimbursement rates so independent rural health clinics (RHCs) receive the same per‑visit payment as provider‑based, hospital‑owned RHCs. The sponsor said the disparity — citing federal action taken in 2021 — unfairly penalizes independent clinics that provide identical primary‑care services.
A series of clinic owners and clinicians described the business effects of the payment gap. "My Medicaid reimbursement ranges from $25,000 to $35,000 a month, but my overhead exceeds that," said Courtney Atkins Luster, who owns a rural clinic in Iberville Parish. Testimony from Alec Johnson and others cited average reimbursements of about $112 per visit for independent RHCs, compared with averages above $250 for provider‑based clinics, and said some provider‑based clinics receive more than $500 per visit in extreme cases. Witnesses warned the current structure encourages hospital acquisition of independent practices and undermines access in underserved areas.
Supporters urged the committee to move the bill forward for further fiscal discussion in appropriations so possible effects on hospital revenues and Medicaid spending can be worked through. Representative Stagney said the intent is to bring parity without harming critical rural hospitals and that appropriations will weigh implementation and budget impacts. The committee reported HB 9‑71 favorable with no recorded objections and signaled continued work with appropriations and stakeholders.