To better understand how states develop their Medicaid hospital payment policies, MACPAC contracted with Health Management Associates to interview state officials and stakeholders in five states (Arizona, Louisiana, Michigan, Mississippi, and Virginia). Three common themes emerged from these interviews:
- the availability of financing for the non-federal share of Medicaid payments affects states’ use of base and supplemental payments;
- Medicaid managed care payments to hospitals closely track those made under fee for service; and
- state adoption of prospective payment systems and value-based payment models is slow.
