Oklahoma’s healthcare landscape is facing significant challenges, with numerous hospitals, particularly in rural areas, grappling with financial instability.
In response, the state’s transition to a managed Medicaid system, known as Sooner Select, aims to bolster hospital revenues and ensure the sustainability of healthcare services.
Financial Struggles of Oklahoma Hospitals
Recent reports indicate that approximately 60% of rural hospitals in Oklahoma are at risk of closure, with 23 facilities facing immediate threats.
Factors contributing to this precarious situation include low patient volumes, high operational costs, and inadequate reimbursement rates from traditional Medicaid programs.
For instance, Valley Community Hospital in Pauls Valley closed its doors in January 2025 due to monthly financial shortfalls reaching six figures.
Managed Medicaid Sooner Select
To address these challenges, Oklahoma implemented Sooner Select, a managed care model for its Medicaid program. This system involves the state contracting with private insurance companies to manage and deliver Medicaid services, aiming to improve care coordination and financial predictability.
In April 2024, hospitals received an initial $252.4 million through enhanced directed payments under Sooner Select, with an equivalent amount disbursed in July 2024.
These enhanced directed payments are designed to bridge the gap between Medicaid reimbursements and the actual costs incurred by hospitals, thereby alleviating financial pressures.
Challenges and Adjustments
Despite the financial infusion, the transition to managed care has presented challenges. Healthcare providers have experienced administrative complexities, such as aligning patient and payment databases with new insurance entities.
Rich Rasmussen, President and CEO of the Oklahoma Hospital Association, acknowledged these “growing pains” but emphasized that such issues are typical during significant system overhauls.
Future Outlook
The sustainability of Oklahoma hospitals, especially in rural regions, hinges on the effective implementation of Sooner Select and continuous support from state and federal programs.
While managed Medicaid has provided a financial lifeline, ongoing efforts are essential to address systemic challenges and ensure that hospitals can continue to serve their communities effectively
Oklahoma’s shift to a managed Medicaid system through SoonerSelect represents a pivotal strategy to support hospitals facing financial hardships.
While the initial outcomes are promising, continuous evaluation and adaptation are crucial to ensure that this approach effectively sustains healthcare services across the state.