In the past couple weeks we've been drawing attention to how the extra Medicaid funding slated for Illinois as part of the stimulus package could be in jeopardy if the state doesn't deal with its backlog of provider reimbursements.  One possible solution is State Sen. Jeff Schoenburg's bill permitting Gov. Quinn to take out a short-term loan to clear the way for the much-needed federal assistance.  We plan to keep an eye on its progress.

In the meantime, it's encouraging to see the General Assembly move on a separate stream of Medicaid funding earmarked for Illinois that has been held up because of the state's dire financial situation.  As the Tribune's Judith Graham, explained earlier this month, the Illinois "hospital assessment program," if up-and-running, would yield an extra $450 million from the feds for Medicaid patients.  But because the state hasn't been able to find the money to initialize the program, those extra dollars have remained in limbo.  Yesterday, both the House and Senate passed a bill to borrow the requisite amount from various state funds.  More from the Trib:

Hundreds of millions of dollars in extra Medicaid funds should start flowing to Illinois hospitals and other medical institutions soon after Springfield lawmakers took action today.  

Lawmakers agreed overwhelmingly to borrow $510 million  from existing funds to launch the state's $3.2 billion hospital assessment program. Gov. Pat Quinn is expected to sign the legislation.

This is a good first step.  Now let's make sure we get our full stimulus take as well.