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County hospital fee program, per‑diem rules boost Essex revenue to $18M projection
Summary
Essex County’s health director told commissioners that a federal Medicaid fee program and a change to include outpatient visits pushed a county revenue line to $18 million for 2026; officials said the funding is county revenue (not hospital operating revenue) and depends on federal approval of the plan.
Frank Delgaudio, director of the Department of Health and Rehabilitation, updated commissioners on the county psychiatric hospital and an expanding federal‑state hospital fee program that has become a significant county revenue source.
Delgaudio explained the fee is administered through a federal/state accounting formula that charges participating hospitals a fee and then redistributes federal funds back to hospitals based on Medicaid discharges. ‘‘This is not a revenue stream for the…
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