On Beacon Hill … State Budget is Up for Debate…
After the State House of Representatives presented their final version of the State budget for fiscal year 2003, the State Senate recently concluded its own version. As a result, a six-member Conference Committee has been named to negotiate the differences between the branches. While the state fiscal year commences on July 1, the negotiators are not expected to release a final budget before August 1 and in the meantime, the state will operate on a month-to-month budget.
From a hospital standpoint, the most important discrepancies in each version centered around three issues-Uncompensated Care Pool Relief, Medicaid eligibility changes, and Medicaid rate relief for hospitals and physicians. The House and Senate’s proposed figures for each of these budget items are highlighted in the chart below.
In fiscal year 2001, BWH’s uncompensated care pool expenses totaled $14 million and the hospital’s Medicaid losses reached $18 million. BWH physicians experienced an additional $2.8 million loss due to poor Medicaid reimbursements.
Look for more updates on the State’s budget process in upcoming issues of BWH Nurse.
In Washington… Ways and Means chairman adds hospital relief to his drug bill…
In an effort to move legislation forward, HouseWays and Means Chairman Bill Thomas (R-CA) agreed to add $9 billion (over ten years) in Medicare funds for hospitals to his prescription drug bill. Those funds support a 6.0 percent IME payment (it is currently 6.5 percent, scheduled to drop to 5.5 percent and Thomas had previously proposed 5.8 percent) and a more generous inpatient inflation adjustment (market basket minus 0.25 percentage points rather than 0.55). The American Hospital Association has come out in support for the measure. The two percent physician rate increase, Medicare+Choice funds, and postponed home health also cut remain in the package.