Hospitals Push to Stop Budget Cuts to Health Care Providers

The administration wants to cut $2 billion, but the industry’s lobbying group says the cuts will end up costing taxpayers in the long run.

An auxiliary nurse assists a patient in a geriatric unit at the hospital in Angers, western France, on October 23, 2013. The Angers hospital employs 6,000 people including 980 doctors.
National Journal
Clara Ritger
Add to Briefcase
Clara Ritger
March 4, 2014, 3:07 p.m.

A hos­pit­al lob­by­ing group hopes to con­vince Con­gress to avoid mak­ing roughly $2 bil­lion in cuts to health care pro­viders, ar­guing that the health care sys­tem is gen­er­at­ing sav­ings and that slash­ing pay­ments fur­ther would jeop­ard­ize fu­ture in­nov­a­tions in care.

The Obama ad­min­is­tra­tion pro­posed the cuts Tues­day in its 2015 budget re­quest, and it in­cludes re­duc­tions in post-acute care, pay­ments for rur­al hos­pit­als, and re­im­burse­ments for care provided to Medi­care be­ne­fi­ciar­ies who don’t pay their bills. The cuts come after years of spend­ing re­duc­tions to hos­pit­als, which faced some $25 bil­lion in re­duced rev­en­ues in the pres­id­ent’s pro­pos­al last year.

The Fed­er­a­tion of Amer­ic­an Hos­pit­als, which rep­res­ents more than 1,000 health care pro­viders, is push­ing a new study to per­suade law­makers to forgo the cuts. The study, pro­duced by health care con­sult­ing firm Dob­son DaV­anzo, es­tim­ates more than $900 bil­lion in sav­ings to the Medi­care pro­gram over the next dec­ade due to cost cut­ting already be­ing gen­er­ated through changes to the way hos­pit­als and doc­tors provide care. The pro­jec­tion ex­ceeds es­tim­ates by the Con­gres­sion­al Budget Of­fice, which last month lowered its ten-year pro­jec­tions for Medi­care and Medi­caid spend­ing by $221 bil­lion.

FAH Pres­id­ent and CEO Chip Kahn said in his an­nounce­ment at the or­gan­iz­a­tion’s  an­nu­al pub­lic policy con­fer­ence that the sav­ings are the dir­ect res­ult of struc­tur­al changes to Amer­ica’s health care sys­tem that will drive down cost growth. Some of the changes he noted are the use of elec­tron­ic health re­cords, re­duc­tion in hos­pit­al read­mis­sion rates, and ad­op­tion of new care and pay­ment mod­els, in­nov­a­tions which can be traced back to pub­lic policy, in­clud­ing the Amer­ic­an Re­cov­ery and Re­in­vest­ment Act and the Af­ford­able Care Act.

“Our mis­sion now should be to stay the course, with the struc­tur­al re­forms that are driv­ing down health care costs,” Kahn said.

Hos­pit­al lead­ers Tues­day sent a copy of the re­port, along with a call to avoid new hos­pit­al pay­ment cuts, to the House and Sen­ate Budget com­mit­tees’ lead­er­ship.

What We're Following See More »
PLENTY OF MISTAKES IN COVERT TESTS
Report: U.S. Ill-Equipped to Detect Dirty Bomb
4 hours ago
WHY WE CARE

A DHS report "found gaping holes in domestic nuclear detection and defense capabilities and massive failures during covert testing." A team put in place to assess our readiness capabilities found significant issues in detecting dangerous radioactive and nuclear materials, failing to do so in 30 percent of covert tests conducted over the course of the year. In far too many cases, the person operating the detection device had no idea how to use it. And when the operator did get a hit, he or she relayed sensitive information over unsecured open radio channels."

Source:
WON’T INTERFERE IN STRUCTURING NSC OFFICE
White House to Give McMaster Carte Blanche
6 hours ago
THE LATEST
RESTROOM ISSUES RETURN
Trump To Rescind Trans Protections
7 hours ago
THE DETAILS

Donald Trump is planning to reverse an Obama-era order requiring that schools allow students to use the bathroom that coincides with their gender identity. Trump "has green-lighted the plan for the Justice Department and Education Department to send a “Dear Colleague” letter to schools rescinding the guidance." A case is going before the Supreme Court on March 28 in which Gavin Grimm, a transgender high school student, is suing his high school for forbidding him to use the men's room.

Source:
NAIVE, RISK TAKER
Russia Compiling Dossier on Trump’s Mind
8 hours ago
WHY WE CARE

Retired Russian diplomats and members of Vladimir Putin's staff are compiling a dossier "on Donald Trump's psychological makeup" for the Russian leader. "Among its preliminary conclusions is that the new American leader is a risk-taker who can be naïve, according to a senior Kremlin adviser."

Source:
“HORRIBLE” AND “PAINFUL”
Trump Addresses Threats On Jewish Community Centers
10 hours ago
THE DETAILS
×
×

Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.

Login