WESTERN KENTUCKY - Several area hospitals have been awarded millions of dollars as part of a recent Medicaid funding settlement in Kentucky.

Gov. Beshear's office on Wednesday announced $383 million in state and federal funding for 54 rural hospitals in the state by settling a 13-year-old dispute regarding Medicaid funding rates.

As part of the settlement Baptist Health Paducah will receive $15.2 million, Mercy Health Lourdes Hospital will receive $8.9 million, Murray-Calloway County Hospital will get $4 million, and Jackson Purchase Medical Center will be awarded $3.1 million.

The awards come after an administrative action in 2007 and a lawsuit in 2013 involving the rate setting methodology used for acute care hospitals. The hospitals claimed the methodology used by Kentucky Medicaid was invalid, and the Franklin Circuit Court and the Kentucky Court of Appeals agreed. The case is currently pending before the Kentucky Supreme Court. 

Earlier this year Gov. Beshear asked CMS to exercise its authority to dedicate federal Medicaid funds owed to rural hospitals. Following a request from the Beshear administration, Sen. McConnell's office contacted senior officials at CMS and at the U.S. Department of Health and Human Services reiterating the importance of a quick and positive decision for Kentucky's rural hospitals.

The settlement negotiated by Gov. Beshear, with support from Senate Majority Leader Mitch McConnell, successfully convinced the federal Centers for Medicare & Medicaid Services to offer funding in combination with the state's liability of $93.9 million. The previous administration had budgeted an estimated $425 million in state funding to settle the case. said the settlement saved the state more than $300 million and provides funds immediately back to rural hospitals.

To see all the hospitals that will be receiving funds, click the link below.

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Distribution of Funds