Medicaid Update- BWH Bulletin - For and about the People of Brigham and Women's Hospital
Medicaid Update- BWH Bulletin - For and about the People of Brigham and Women's Hospital
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September 29, 2000
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In This Issue:
2001 Wage and Salary Program Unveiled
“A calling, not a business”
Medicaid Update
October Calendar
Pike Notes
Medicaid Package Provides Some Relief As one of the top Medicaid providers in Massachusetts, BWH will recoup some of its significant losses under the State’s Medicaid relief package for 2001. With reimbursement to BWH focusing on patient care areas most affected by the gap between Medicaid payments and cost of care, the package will begin to relieve some of the hospital’s financial losses in caring for Medicaid patients. As part of the FY 01 state budget, the Massachusetts legislature approved $15 million in hospital rate relief in an effort to help hospitals reduce these losses. BWH will receive at least $1.2 million in additional Medicaid payments based on the state’s projections. Last year (FY 99), BWH lost $14 million in caring for Medicaid patients. Providing quality care for all patients regardless of their insurance status or ability to pay is fundamental to the mission of BWH and other hospitals within the Partners HealthCare System. Last year, these hospitals provided medical care to some 65,000 children and adults on Medicaid. Unfortunately, Medicaid reimburses hospitals for less than 80% of the cost of care, resulting in significant operating losses for hospitals. The gap between payments and costs is even larger at academic medical centers like BWH. “The Massachusetts Legislature and the Cellucci administration took a significant first step in approving this rate relief and recognizing the critical role hospitals play in caring for low income patients. We look forward to working with the administration and the legislature during the coming year to build on this progress," said Matt Fishman, director of Community Benefit Programs at Partners. Strong advocacy efforts by the MHA, BWH and Partners HealthCare System during last year’s legislative session provided State Senate and House members with information on increasing Medicaid reimbursement for three patient groups associated with particularly large gaps between Medicaid payments and the cost of providing care. These groups included patients who are so ill they need to be hospitalized for at least three weeks, newborns who need intensive care and patients transferred from community hospitals because of their complex medical conditions.