Bill would give DPHHS 10 extra days to process large hospital supplemental payments
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Summary
House Bill 474 would postpone the deadline for supplemental hospital payments by 10 days to allow the Department of Public Health and Human Services (DPHHS) more time to validate calculations and process large daily payouts within state accounting system limits.
Representative Jane Gillette told the Senate Finance and Claims Committee House Bill 474 would move back the date when the Department of Public Health and Human Services must provide supplemental payments to hospitals by 10 days, a change the department said carries no fiscal impact but allows more time to process large transactions.
Don Holmlund, hospital and physician services bureau chief at DPHHS, described technical constraints in the state's accounting and budgeting system (SABER/SAVERS). Since the May 5 deadline was implemented with House Bill 658 in 2019, supplemental payments grew from about $60 million to roughly $400 million annually; the system's daily payout threshold means the department has limited windows to complete validation and distribution. "The additional 10 days will allow the department to ensure timely and accurate payments to the hospital," Holmlund said.
DPHHS financial manager Geen Hermanson echoed the need for more processing time and was available to answer questions. Committee member Senator Kirk Carpenter asked whether the system limit could be changed; Hermanson said the treasurer's payout threshold is one factor and that specific conversations to modify it had not taken place.
Outcome: The committee moved to concur with House Bill 474 in executive action and the motion carried. Senator Kirk Carpenter volunteered to carry the bill to the floor.
Ending: Sponsor closed by thanking members for the hearing and asking for a green vote.