TOPEKA – Today, Governor Laura Kelly announced Kansas has received federal approval for the enhancement of the Health Care Access Improvement Program (HCAIP), which will bring $341 million to Kansas each year at a time when hospitals in Kansas are financially vulnerable. This additional funding will boost Medicaid payments to hospitals, benefiting all Kansans by helping maintain the state’s hospital network.

Today’s announcement comes after over three years of bipartisan advocacy and efforts at the state and federal level.

“This is a huge win for our rural hospitals, for our health care workers, and for more affordable health care in Kansas,” Governor Laura Kelly said. “I want to thank Senator Moran, Representative Davids, and the rest of the federal delegation for working with my administration to secure this critical funding. Next, we must expand Medicaid here in Kansas to further strengthen our health care workforce and increase access to care for all Kansans.”

HCAIP historically imposed an assessment on inpatient revenues for most Kansas hospitals. In 2020, the Kansas Legislature increased the provider assessment and expanded the scope of the assessment to include outpatient services. Funds drawn down through a federal matching program are critical to increasing and improving access to medical care and to help reduce health disparities among rural and minority populations.

“Kansas hospitals appreciate the efforts of our state and federal leaders to obtain approval for a program that will help support hospitals’ ability to provide care to all Kansans,” Chad Austin, President and CEO, Kansas Hospital Association said.

“We are thankful for the diligent work from our Medicaid leadership team, congressional delegation and appreciate our strong and collaborative relationship with the hospital leaders in Kansas,”  Secretary Janet Stanek, Kansas Department of Health and Environment, said. “We also want to thank our federal Medicaid partners and the Centers for Medicare and Medicaid Services. This important program would not be possible without their support.”

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