Texas Health Resources - The Business of Healthcare

The Business of Health Care Report
Assessing Medicaid - February 2003

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I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

Today, we'll examine Medicaid, and how the health care industry must deal with increasing demand from those who receive Medicaid benefits while facing government cutbacks in reimbursement.

With a weakened economy resulting in more unemployment, the number of people who qualify for Medicaid is now about one in every 10 Americans, according to a Kaiser Commission report. Texas is only slightly better off, with 1 in 11 residents receiving Medicaid last year.

Compounding the problem is the growing number of physicians who no longer accept Medicaid patients. A 2002 Texas Medical Association physician survey found that less than half of Texas physicians are accepting new Medicaid patients. Just two years ago, two-thirds of Texas doctors accepted these patients.

So where do these uninsured Texans go when they need primary care? Often, they go to hospital emergency rooms, a last resort for patients with no other medical or financial options.

And the situation may get worse. A Kaiser Commission survey found that 49 states, including Texas, plan some Medicaid cost containment this year. Considering that Medicaid already pays doctors and hospitals less than it actually costs to treat Medicaid patients, it's no wonder the health care industry is bracing for a crisis and patients are having difficulty accessing care.

The Texas Hospital Association vows to work with hospitals to minimize legislative cuts in Medicaid and to maintain current reimbursement levels for health care providers, while the Texas Medical Association advocates improved physician participation.

Either way, it's clear that hospitals and physicians need allies in Austin and in Washington to help the Medicaid program continue to do what it was designed to do - provide health care to those who otherwise could not afford it - without crippling those who provide that care.

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.

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