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The Business of Health Care Report
Today's topic is a recent study on the
impact of Medicaid and the Children's Health Insurance Program - more commonly known as
CHIP. The Texas Hospital Association and the
Texas Medical Association asked the Perryman Group, an economic and research analysis firm,
to study the impact of Medicaid and CHIP on business activity in Texas and the potential
monetary effects if these programs are cut. The study concluded that the Texas
economy and the state treasury would lose far more than the state budget would save from
spending cuts in Medicaid and CHIP. The sobering findings show that for every dollar cut
in state spending on these programs, state revenues drop by 47 cents; local taxes rise by
51 cents; health insurance premiums increase by $1.34; and the Texas health care system
loses $2.81 in federal funds. In a nutshell, the Perryman report
says that cuts to Medicaid and CHIP will backfire - with long-term financial setbacks
and 145,000 permanent jobs lost as the end result. Originally, a 33 percent cut in
funding was proposed for these programs. This would have resulted in a loss of more than
$13 million to Texas Health Resources' hospitals at a time when the cost of providing
charity care to a growing uninsured population is soaring. The latest proposal envisions a 5
percent cut, resulting in a one-year loss of $4 million to THR hospitals and millions
more for hospitals statewide. But, that's if only 5 percent is cut. Proposed eligibility
changes and modifications to the Medicaid application process could mean 10 to 12 percent
cuts - creating a staggering financial setback for hospitals. In the end, these cuts will shift the
burden of paying for health care to local taxpayers and local providers. Local businesses
also will feel the impact through higher health insurance premiums for their employees.
The Legislature will produce a balanced budget, but at what cost to the state, its citizens
and its health care providers? 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.
©
2003 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 