Hospital Reimbursements- BWH Bulletin - For and about the People of Brigham and Women's Hospital
Hospital Reimbursements- BWH Bulletin - For and about the People of Brigham and Women's Hospital
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May 22, 2000
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In This Issue:
BWPO Takes Shape
Hospital Reimbursements
Pike Notes
JCAHO Mock Survey
Domestic Violence Awareness
The New England Journal of Medicine
CIMIT
Honoring BWH Nurses
At the top of NIH research funding
Since Congress passed the Balanced Budget Act (BBA) in 1997, hospitals from throughout the nation have been struggling to maintain positive operating margins. While some BBA relief was passed last year, it represented only a small percentage of the total amount of funding cuts. Combined with increased penetration by managed care companies and flat Medicaid rates, the health care industry was heading for dire straits. Hospitals in Massachusetts have been hit particularly hard hit by the combination of Medicare cuts, low Medicaid payments and inadequate private insurance reimbursement rates. In fact, Massachusetts is the only state in the nation where hospitals have generated a negative bottom line, with more than half of the Commonwealth’s hospitals losing money. Massachusetts hospitals are now being paid below costs by all three major payer groups. With that in mind, hospitals have begun an intensive campaign to restore fair and adequate funding levels to ensure high quality patient care. The Massachusetts Hospital Association (MHA) is leading the fight for higher Medicaid reimbursements. Currently, hospitals in the state receive only 78 cents on every dollar spent caring for patients. In May, more than 150 hospital and health system trustees and CEOs, led by Partners Chairman Jack Connors and BWH President Jeffrey Otten, rallied at the State House to ask legislators for greater Medicaid support. At BWH, staff and employees have worked aggressively at controlling costs and the hospital has been able to generate a slightly positive margin so far this year. However, the margin remains insufficient to fund long-term investments in buildings, equipment and other capital needs and sustain our commitment to our mission driven activities. You can help. Contact your state legislator and ask for their support for fair Medicaid reimbursement levels. To find out the name of your legislator, contact the public affairs office at 732-5008.