Hospitals Get a Break – For Now      

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A regulation that was proposed and backed by President Bush to cut $5 billion in Medicaid funds for public hospitals over the ext five years was blocked by a federal judge Friday.  This gives some Bay Area public hospitals a break and will let them breathe a sigh of relief for the time being.

Without this ruling, the funds would have started to be reduced starting Sunday, the day before Memorial Day.  Temporarily, at least, the funds are still available, but this is only a temporary fix. 

If the regulation eventually takes effect over 22 public hospitals will lose a total of approximately $600 million annually for the next six years.  The California Association of Public Hospitals and Health systems located in Oakland, CA, is fighting hard to extend the moratorium on the cuts.

Alameda County Medical Center in the town of Alameda, a suburb of Oakland, serves a high number of patients and would lose about 20% of its total income and operating budget if the moratorium is not extended.  This amounts to almost $100 million annually. 

Other hospitals stand to lose millions as well.  Santa Clara Valley Medical Center would lose nearly $38 million annually, San Mateo Medical Center, $11 million annually, Contra Costa Regional Medical Center, $9 million annually, and San Francisco General Hospital $29 million.  This is just five hospitals that take care of a great number of individuals that have no other place to go for medical care. 
In addition, University of California hospitals would lose $116 million annually.

The reason that the court blocked the regulation is that the court feels that the Bush Administration acted improperly in conjunction with CMS in trying to eliminate coverage that is the lifeline to many low-income individuals and families who depend on this coverage and assistance. 

At this point, Congress, CMS, several governors and Mike Leavitt, head of department of Health and Human Services, have agreed to work together to try to solve some of the problems that have led to this point.  Hopefully they will find a way to keep enough money available to these public hospitals that are in many cases the only lifeline low income individuals have. 

Entry Filed under: General-Medicare