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The Business of
Health Care Report
For millions of Americans, Medicare is the financial
failsafe for access to quality health care. But the insurance program so sacred to senior citizens is
being threatened by proposed payment cuts to physicians and hospitals in order to potentially fund a
prescription drug program - a hot topic and political promise as candidates strive to lock in votes
before the next election. As it stands now, $21 billion in inpatient reimbursement
cuts to hospitals are scheduled to take effect October 1. But recent House action, spurred by hospital industry
advocacy efforts, is considering reinstatement of $9 billion to hospitals over 10 years, an acknowledgement
that ongoing reductions have been harsh. Of course, the Senate is yet to consider these measures. This scenario
leaves funding sources for a prescription drug program undetermined. What seniors need to consider is whether
they are willing to trade some aspects of their care- hospital and physician payments- to gain another like prescription
drug coverage? The price to seniors could be high. The impact on hospitals and physicians definitely will be harmful.
A report prepared for the Centers for Medicare and Medicaid Services says that financially strong nonprofit hospitals
have stabilized financially after a series of Medicare cuts, though they face increased scrutiny on performance and a
dire need for capital investment. Now the physician side of the equation. A law enacted January 1, 2002,
changed the formula by which Medicare determines reimbursement payments to your physician. The American Medical Association
responds that with these changes, Medicare is not paying what it costs to deliver care to seniors. According to the
American Medical Association, the potential fallout to these reimbursement reductions is clear: physicians will limit acceptance
of new Medicare patients, drop the acceptance of Medicare assignment and limit the percentage of their practices devoted to
caring for Medicare beneficiaries. As the old saying goes, are we robbing Peter to pay Paul at the expense of
hospitals, physicians and Medicare beneficiaries? It appears so. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO Doug
Hawthorne with "The Business of Health Care Report" on NewsRadio
1080 KRLD.
©
2002 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 