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Oktibbeha County to release $2.5 million from escrow to settle Medicaid reconciliation with Baptist Memorial Hospital
Summary
County staff told supervisors that a recent Medicaid reconciliation produced a $2.5 million settlement owed to Baptist Memorial Hospital; board approved using funds from a $5 million escrow set up in the hospital asset purchase agreement to satisfy the claim.
The Oktibbeha County Board of Supervisors approved releasing funds from an escrow account to resolve a Medicaid reconciliation payment to Baptist Memorial Hospital.
County staff explained that recent reconciliation of the Medicaid hospital access contract resulted in a $2.5 million settlement owed to Baptist. "Recent reconciliation of the Medicaid contract or agreement resulted in a 2 and a half million dollar, settlement that needed to be reemerged to the Baptist Hospital," a staff presenter said. County staff said the payment will come from the $5 million escrow established in the asset purchase agreement.
Why it matters: The escrow was created at the time of the hospital asset sale to cover post-closing obligations and claims. Board members discussed that additional reconciliations could produce more liabilities over the next several months: staff said there may be another reconciliation window of three to six months, meaning further payments are possible.
Board action and process: With board approval, staff will present the necessary documentation to the bank holding the trust (Renasant Bank) and execute the release for Baptist Memorial. The board recorded the motion to authorize the release and moved to have the board president execute required documents to deliver funds from the escrow to Baptist.
What's next: Staff said reconciliations with Medicaid may continue for several months; the county may face additional settlement obligations and will continue to use the escrow account for eligible claims tied to the asset purchase agreement.
