So Obamacare is lowering reimbursements
from Medicare. Americans are not signing up for Obamacare. Obamacare is reimbursing
on the same scale as Medicaid (in some instances ½ of what Medicare pays).
Private insurances are lowering reimbursements because Medicare is. Americans
are losing their health insurance from work. Private insurances are not writing
policies to individuals. On and on and on and on…..So what could go wrong? Read
on and find out!
In Obamacare Buildup, Hospitals
Face a Self-Inflicted Wound
By John Tozzi July 18, 2013
From
BloombergBusinessweek
Liberty
Hospital near Kansas City, Mo., has eliminated 120 jobs this year, closed its
wound-care clinic, and stopped offering free rides to poor and elderly
patients. The Cleveland Clinic is searching for ways to cut $250 million from
its $6 billion budget in the next 16 months. It’s already closed expensive
maternity wards in half the hospitals it operates. In northern New York,
Adirondack Health may shutter its emergency room in Lake Placid and a dialysis
center in Tupper Lake. All of these hospitals and scores of others nationwide
are squeezing services to make up for unexpected budget shortfalls—the result
of a deal they made with the federal government that they’re now having second
thoughts about.
When the Obama
administration was selling the benefits of the Affordable Care Act in 2010, the
hospital industry agreed to accept a $155 billion decrease in Medicare payments
over a decade. The administration assured hospital executives that patients
newly covered under the health-care law would make up for much of the loss.
Because of the ongoing squabbles between President Obama and Republicans in
Congress over the U.S. budget, that hasn’t happened.
The automatic
federal spending cuts known as sequestration have sliced an additional
2 percent from Medicare reimbursement payments to hospitals this year.
Beginning next year, many hospitals will also collect less money from Medicaid,
the federal program that provides coverage for the poor, than they’d been promised
when they signed on to the Affordable Care Act. The law required all states to
expand their Medicaid programs to cover uninsured citizens who make too little
to buy plans under Obamacare. But the Supreme Court ruled last year that states
could opt out. Nearly half have chosen to do so, as Republican governors or
GOP-led state legislatures have opposed the increased Medicaid spending. That
means 6 million poor Americans who would’ve been eligible for health
coverage won’t get it; many of them will continue to walk into emergency rooms
unable to pay for services that hospitals by law have to provide. “We are
hugely affected by what’s happening in Washington,” Adirondack Chief Executive
Officer Chandler Ralph says. “It’s a hiccup there, and it’s a tsunami here.”
For-profit
health systems whose patients are largely covered by private insurance may be
equipped to absorb the losses. Rural and inner-city hospitals that run on thin
margins and treat large populations of patients on Medicare, Medicaid, or
without any insurance are suffering. “The trade-off that the hospital industry
made was, we’ll take lower payments going forward in exchange for more people
being insured,” says Patrick McGuire, chief financial officer of St. John
Providence Health System in the Detroit area, which eliminated 160 positions in
May. “It’s not quite working out the way we thought it was going to.”
Missouri’s
decision not to expand Medicaid is bad news for Ozarks Medical Center, which
serves a largely poor, rural part of the state near the Arkansas border.
Beginning on Oct. 1, the 114-bed nonprofit hospital will lose $630,000 a year
in federal payments it now gets for treating low-income patients. Expanded
coverage under Medicaid was supposed to make up for that, but Missouri’s
Republican legislature blocked it. The federal sequester is taking another
$660,000 from Ozarks’ budget, says CEO David Zechman. He and 64 other managers
took a 5 percent pay cut at the end of June, and the hospital laid off
32 workers. A dozen open positions won’t be filled. “We haven’t cut any
services yet. That’s not to say we won’t in the future,” Zechman says.
The industry is
lobbying to get some government money back. A bill by Georgia Democratic
Representative John Lewis would delay Obamacare cuts to the extra Medicare and
Medicaid payments that Ozarks and other hospitals receive for treating the
poor. Another measure, introduced in June by Democratic Representative Bruce
Braley of Iowa, would reinstate some funds for rural hospitals, such as
Adirondack Health, that were allowed to expire in the fiscal cliff standoff in
December.
U.S. hospitals
have lost jobs in two of the last six months, according to the Bureau of Labor
Statistics, a point hospital lobbyist’s stress in their rounds on Capitol Hill.
They aren’t hopeful of persuading lawmakers to put money back into the federal
budget when all of Washington is arguing over how to take more out. Rick
Pollack, executive vice president of the American Hospital Association, says
hospitals that treat the poor and elderly are instead focused on preventing
deeper cuts in the deficit showdown coming this fall. The goal for now, he
says, is “making sure that there is no more harm done.”
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