Healthcare In Crisis: HARI: Cuts to Medicare, Medicaid would put R.I. hospitals at risk

Friday, July 22, 2011

HARI: Cuts to Medicare, Medicaid would put R.I. hospitals at risk

Providence Business News, By Richard Asinof - July 21, 2011

CRANSTON – Proposed cuts to Medicare and Medicaid federal spending, now under discussion in Congress as part of the deficit reduction plans, could cost hospitals in Rhode Island as much as $550 million over the next 10 years, according to the Hospital Association of Rhode Island.

The proposed reductions would “exacerbate health care workforce shortages, jeopardize access to care by undermining financially fragile hospital and health systems [in Rhode Island]," the HARI Tracking Trends study, released on July 19, reported.

One of the proposals now under consideration, to cut Medicare indirect medical education payments to teaching hospitals by 60 percent, would cost the U.S. economy an estimated $10.9 billion and nearly 73,000 jobs, HARI said citing information from the American Association of Medical Colleges.

The study ranked Rhode Island 20th in the country in total economic impact, with a loss of $131 million, a loss of 873 jobs, and $7.9 million in lost tax revenue.

The cuts under discussion include: reductions in federal support for Medicaid by implementing block grants, eliminating Medicaid provider taxes, and restructuring the formula used to provide states with funds to support Medicaid, it said.

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Statistics Collection

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About 75,000 patients with hospital-related infections died in 2011.
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Half the nation's 47 million uninsured workers are employed by small businesses.
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15.8% of Americans are uninsured, that's one in 6.
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