FLOYD CO., Iowa - Iowa’s decision to change its Medicaid practices is putting the squeeze on Floyd County Medical Center. The budget woes have prompted the hospital to request half a million dollars from the county board. The board has tentatively approved half that amount.
The hospital maintains it lost roughly $700K last year because of the Medicaid changes.
“When the state went to privatize Medicaid, it’s resulted in the insurance companies that are managing it for the state to basically govern how hospitals are reimbursed,” said Administrator Rod Nordeng.
Now the facility is having to make widespread cuts. They have closed the Nashua Clinic, meals on wheels has changed hands and cuts to departments.
Next up, the possibility of increasing the amount Floyd County taxes residents to fund the hospital.
“For two decades there has been a sense of pride that we didn’t have to ask for any additional funding from the county to maintain this wonderful medical center, but you need to step forward if you want to maintain it,” said Nordeng.
The state average dollar amount hospitals in rural Iowa taxes residents is about $86 per person.
Franklin and Hancock County tax around $135 per resident. Mitchell County charges their locals around $70 per person.