A large hospital system has agreed to alter its managed care contract with Illinois, saving the state $5.1 million.
Advocate Health Care's agreement was announced Thursday. It shows there may be a middle ground for hospitals as Gov. Bruce Rauner tries to cut Medicaid spending by $1.5 billion.
Advocate is the largest of 17 new partnerships providing Medicaid managed care in Illinois. The groups eventually will get only per-patient flat rates. For now, they're getting both fees for services and per-patient payments.
Rauner's budget found $60 million in savings by speeding up the transition. Hospitals have balked, but Advocate agreed to end extra payments by the end of the year.
Spokesman Danny Chun says the Illinois Hospital Association looks forward "to the state's ongoing commitment to sustainable, provider-sponsored" managed care.
