Press Releases

For further information about NAUH or comments on federal Medicare and Medicaid policy issues, please contact Ellen Kugler, Esq., executive director, at 703-444-0989 or by e-mail at ellen@nauh.org.

 

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NAUH releases a study that finds that hospitals may lose as many as 87,358 direct jobs because of Medicare disproportionate share (Medicare DSH) and other Medicare spending cuts associated with implementation of the Affordable Care Act and another 46,103 hospital jobs if additional Medicare cuts currently under consideration in Congress – the elimination of Medicare bad debt reimbursement and a 60 percent cut in Medicare indirect medical education payments (Medicare IME) – are adopted.
NAUH releases a study demonstrating that cuts in future Medicare disproportionate share payments (Medicare DSH) mandated by the Affordable Care Act will cost the typical urban safety-net hospital $8.5 million in lost Medicare revenue in 2014 and more than $53 million through 2019. With more than one-half of all urban safety-net hospitals already losing money, such cuts could eventually jeopardize access to care in urban areas across the country. Cuts of this size, NAUH maintains, overestimate the degree to which health care reform will reduce the need for Medicare DSH and Medicaid DSH payments to urban safety-net hospitals.
NAUH criticizes an agreement between the Obama administration, the Senate Finance Committee, and several hospital groups to reduce federal health care spending, especially Medicare disproportionate share (Medicare DSH) and Medicaid DSH payments, to help pay for health care reform. NAUH points out that even with more people insured, urban safety-net hospitals will still need Medicare DSH and Medicaid DSH revenue to care for their many low-income patients and those who remain uninsured despite reform.
NAUH expresses its opposition to an Obama administration proposal to reduce Medicare disproportionate share (Medicare DSH) and Medicaid DSH payments to hospitals by 75 percent over the next 10 years. These payments help compensate hospitals for the inability of their low-income elderly patients to pay their Medicare co-pays and deductibles and help reduce the impact of state Medicaid programs that typically reimburse hospitals less than the cost of the care they provide to their Medicaid patients. NAUH maintains that the need for these subsidies will not disappear when reform enables many more Americans to obtain health insurance.
NAUH offers four recommendations for health care reform: 1) ensure the adequacy of Medicare and Medicaid payments to providers, including Medicare disproportionate share (Medicare DSH) and Medicaid DSH payments; 2) mandate the inclusion of private, non-profit urban safety-net hospitals in future Medicare demonstration programs that test new approaches to the delivery of integrated care; 3) continue making Medicare medical education payments to teaching hospitals and give urban safety-net hospitals priority in the distribution of new residency slots; and 4) employ appropriate risk adjustments when limiting future Medicare payments for inpatient services for patients readmitted to the hospital shortly after being discharged.
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