$252.4 Million in First Directed Payment Made Since SoonerSelect Transition

Oklahoma City, OK – The Oklahoma Health Care Authority has distributed the first enhanced directed payment to Oklahoma hospitals in the amount of $252.4 million. This enhanced funding was made possible by the agency’s successful transition to SoonerSelect and the allocation of a 2023 state appropriation.

“The creation and distribution of the enhanced hospital directed payment through SoonerSelect allows the agency to accelerate vital financial support to Oklahoma hospitals, ensuring Oklahomans have access to critical health care providers in their communities,” said Ellen Buettner, Chief Executive Officer of OHCA. “This proactive approach supports providers in continuing to deliver quality care, while increasing their investment in improving health outcomes, prevention efforts, and health care workforce development.”

In 2023, the Legislature appropriated $200 million to OHCA to distribute to hospitals. $175 million was disbursed in August 2023 using a methodology similar to the existing Supplemental Hospital Offset Payment Program (SHOPP). The remaining $25 million was used to accelerate the implementation of a new supplemental hospital payment program based on average commercial reimbursement levels.

"The distribution of these first payments plays a pivotal role in maximizing taxpayer dollars to enhance Oklahoma hospitals," said Senate Appropriations and Budget Chairman Roger Thompson (R-Okemah). "OHCA's strategic allocation of federal funds underscores a thoughtful approach aimed at maximizing impact, ensuring that both rural and urban hospitals receive crucial support."

Under the traditional SoonerCare model, OHCA administered a supplemental payment equal to the difference between Medicaid and Medicare rates, totaling approximately $800 million annually. Under SoonerSelect, the new supplemental hospital directed payment program allows OHCA to administer a supplemental payment equal to the difference between Medicaid and 90% of the average commercial rate, providing an additional $500 million to hospitals statewide.

Additionally, under SoonerSelect, OHCA is implementing a new provider incentive payment program that incentivizes early intervention behavioral health screenings, after-hours access to services and well visits. OHCA will evaluate these claims quarterly, with the first payment slated for July 2024. OHCA estimates an additional $100 million will be distributed to Oklahoma providers annually.

"Oklahoma hospitals are facing increased labor costs and the effects of inflation, combined with being tasked with caring for the uninsured and those on Medicaid," said House Appropriations and Budget Chairman Kevin Wallace (R-Wellston). “These funds should help our hospitals operate in the black as they continue to serve the crucial health care needs of Oklahomans. I'm thankful for the agency’s work in creating and executing a plan that utilizes taxpayer dollars wisely."

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