ROCKFORD, Ill. (WIFR) — Mercyhealth will receive $2 million in funding to preserve services for Medicaid patients on Monday.

State Senator Steve Stadelman and Rep. Maurice West secured the funding for Mercyhealth when Illinois lawmakers approved a budget for the new fiscal year that begins July 1, according to an announcment from Stadelman and West on Monday.

Gov. Pritzker signed the budget legislation last week. The money is intended to help hospitals with the highest percentage of Medicaid patients and those disproportionately affected by the COVID-19 pandemic, according to the announcement.

"Mercyhealth, which operates hospitals on Rockford’s northwest and far northeast sides, drew sharp criticism with its announcement in April that an estimated 66,000 patients receiving Medicaid benefits through four Managed Care Organizations would need to find new doctors amid the pandemic as soon as July 21. Mercy also closed its Pediatric Intensive Care Unit," according to the announcement.

Stadelman and West hope the $2 million in operational assistance gives Mercy an incentive to continue its MCO agreements. The funds are reserved for "hospitals that participate in the state’s Medicaid managed care program," meaning Mercyhealth would forfeit the money by declining to change its position, according to the announcement.

"My desire is to see the most vulnerable in our community enjoy the same continuity of care as those who are more fortunate," Stadelman said. "We fought for Rockford to be included in this funding with the belief that some extra backing from the state may encourage Mercy to look out for low-income families."

Mercyhealth had 90 days to notify patients of its intent to sever its MCO agreements. Three of them end next month; one remains in effect until October.

"The last thing that Medicaid patients need is the uncertainty and fear of what is going to happen to their healthcare during a pandemic. The fight for more funds to Mercyhealth is to ensure that healthcare remains accessible to everyone in Rockford, no matter what zip code you live in or your level or income," West said.

Seven of the hospitals are in Chicago, and one is in the St. Louis metropolitan area.

“We truly appreciate all of the assistance from our political partners. We are also thankful that the state recognizes that our Medicaid payments are woefully inadequate; however, this fund was provided to eight of the largest Medicaid systems in the state, not specific to Mercy. Mercy is one of the largest Medicaid providers in the state and, by far, the largest locally. This $2 Million will help offset our Medicaid losses of $52 Million this year," Kimberly Scaccia, Vice President, Revenue Cycle at Mercyhealth said.

Javon Bea Hospital is one of nine statewide that are designated to receive $19.8 million from the Illinois Department of Public Health to support care of low-income patients, Stadelman and West announced Monday.

“Mercyhealth has already shown our commitment to our community by executing a Managed Medicaid contract with Molina along with the $101,106,630 of charitable care, financial assistance, and community contributions we provide each year," Javon R. Bea, President and CEO of Mercyhealth said.