State Auditor Edelen won’t be releasing his formal audit on the subject until early next year, but the auditor gave a preview of his findings at a Kentucky Chamber of Commerce conference Monday.
He pointed to a financial imbalance in reimbursements, which he described as "unsustainable." With some rural health care providers receiving up to 80 percent of their payment from government insurance programs, which reimburse at 10 to 20 percent below cost, he said the remaining private insurance providers would have to reimburse above cost to make up for the difference.
"What we know is that when the vast majority of your patents are being offered services at which you're being reimbursed at below the cost of service, folks, it doesn't matter how much of a volume business you can run if you're not getting paid adequately for the services you're providing," Edelen told the audience.
The auditor warned that the loss of rural hospitals, which often serve as the largest employers in some regions, could have a devastating effect on communities.