SALISBURY, Md. - Chesapeake Healthcare, a regional provider on Maryland’s Eastern Shore, is warning state lawmakers that funding disparities are threatening its sustainability, CEO Brian Holland said Friday.
The health center, which operates nearly two dozen locations across Wicomico, Worcester and Somerset counties, relies heavily on federal grants to cover uncompensated or free care for patients who are uninsured or underinsured, according to Holland.
Holland painted a dire picture for the Eastern Shore delegation during a meeting Friday. He told WBOC on Monday that while the center has grown exponentially over the past 15 years, its grant funding has remained largely unchanged.
“For as long as I can remember, our health center has been the worst funded on a per patient basis by a long, large margin,” Holland told Eastern Shore lawmakers.
Delegate Barry Beauchamp said the funding gap must be addressed.
“It’s kind of simple. I mean, no one can operate with that differential, so I would say that they absolutely, positively need to get this fixed,” he said.
Eastern Shore delegation chair Delegate Chris Adams pledged action.
“Access to care in the rural parts of our state is so difficult,” Adams said. “If they’re considering cutting back, they need to live under new regimes of cost reimbursement.”
Adams also plans to focus on Chesapeake Healthcare's issues related to claims and rate negotiations with an insurance provider.
One potential remedy could be a proposed House Bill 848, which would require increased oversight by the Maryland Insurance Commissioner when health insurance providers deny coverage for services. Under the bill, if denials reach a specified threshold, the commissioner would be prompted to launch further investigations.