LOUISVILLE, KY (WAVE) - Passport Health is developing their new headquarters at 18th and Broadway, but changes in state funding could threaten the company’s future.
The state says the change was a simplification in rate structure that isn’t affecting any other care provider.
The development in the California neighborhood continues to take shape and construction continues. But Michael Rabkin with Passport Health said times aren’t good.
“Recent reductions in reimbursement rates that unfairly impact the Greater Louisville region have forced us to operate at a financial loss for months,” Rabkin said. “This is simply unsustainable, putting in jeopardy our ability to serve members, pay providers, and maintain more than 700 local jobs.”
The development means a lot to the community where it is being built. The field was empty for years.
“It feels good to be right across the street from a new business development,” Latosha Perry, owner of Ace of Slushie World, said.
Perry’s said her shop has feed construction crews over the past five months. The business is new to West Broadway. Perry has watched Passport Health take shape.
“The restructure on the street and the redevelopment has helped a lot,” Perry said.
Perry said she would hate to see progress stalled.
Rabkin said a restructuring of Medicaid and Medicare reimbursement rates places a strain on services and jobs.
Doug Hogan, Cabinet for Health and Family Services spokesman, said the new rates have simplified the system. While the cabinet’s secretary is reviewing an appeal filed by Passport, Hogan said Passport could address business practices that may be causing financial stress.
Rabkin has not said if their financial losses will impact the construction on West Broadway.
At her small shop, Perry said uncertainty does not shake her confidence.
“It wouldn’t be something that jeopardizes the opportunity for us to be successful,” Perry said.
The firm managing the constructions for this development said it is still looking for workers and will hold a job fair on Tuesday, Feb. 5.