$250 Million Relief May Positively Impact BWH- BWH Bulletin - For and about the People of Brigham and Women's Hospital
$250 Million Relief May Positively Impact BWH- BWH Bulletin - For and about the People of Brigham and Women's Hospital
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January 26, 2001
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In This Issue:
Bigby receives Connors Award
DSU Renovation and Relocation
$250 Million Relief May Positively Impact BWH
February Calendar
Beloved Physician Retires
PROMESA Takes Flight
Employee Discounts
On the heels of a highly anticipated federal Balanced Budget Act relief package comes nearly $250 million worth of local relief for Massachusetts hospitals. On Wednesday, Governor Paul Cellucci vowed this amount of relief in his State budget proposal. The proposal would cut in half the amount hospitals are required to pay into the “free-care pool,” the Massachusetts fund for treating the uninsured. It was reported in The Boston Globe on January 22 that this measure plus other changes in the pool will result in $184 million savings for Massachusetts hospitals. Currently, Massachusetts hospitals collectively pay $215 million into the pool, while HMOs pay $100 million and the state contributes $30 million. Another part of the Governor’s proposal that could directly affect BWH is the promise of $10 million in additional Medicaid funding. Currently, the state reimburses less than 80 cents on the dollar for Medicaid services. Jeff Otten, president, BWH, and immediate past chairman of the Massachusetts Hospital Association (MHA) said “It is gratifying that health care has moved to the top of the State’s agenda. We at BWH, along with other hospital leaders in Massachusetts, look forward to working with state legislators to ensure the follow-through of the proposed commitment to easing hospital losses.” Hospitals in the Commonwealth collectively lost more than $200 million in 2000. The MHA continues to educate government leaders on the unintended problems brought on by deficit funding —emergency room diversions, surgery cancellations and bed crunches.