Calif. hos­pi­tals squawk at $86 mil­lion Med­i­caid cut

Modern Healthcare - - LATE NEWS -

Cal­i­for­nia Gov. Jerry Brown’s pro­posed bud­get for 2012-13 would re­duce Med­i­caid rev­enue for hos­pi­tals in the state by $86 mil­lion and could cause prob­lems for ru­ral health clin­ics, se­niors and peo­ple with dis­abil­i­ties, ac­cord­ing to a me­dia state­ment from C. Duane Dauner, pres­i­dent and CEO of the Cal­i­for­nia Hos­pi­tal As­so­ci­a­tion. Brown pro­poses the state cut spend­ing on Medi-cal by $842.3 mil­lion, spend­ing $59.7 bil­lion in to­tal on the state’s Med­i­caid pro­gram. The as­so­ci­a­tion took is­sue with where some of the cuts are aimed, though it ac­knowl­edged that the state needs to ad­dress its bud­get chal­lenges. “The ad­min­is­tra­tion’s pro­posal to re­di­rect nearly $43 mil­lion from pri­vate and non-des­ig­nated pub­lic hos­pi­tals is dis­ap­point­ing,” Dauner wrote in ref­er­ence to Brown’s pro­posal to tap into a hos­pi­tal sta­bi­liza­tion fund. “These sta­bi­liza­tion funds were in­tended to cover costs al­ready in­curred by hos­pi­tals. And, be­cause these funds are matched by fed­eral dol­lars, the loss to hos­pi­tals would be al­most $86 mil­lion,” he wrote. Dauner also wrote that the pro­posal to move to a risk-based pay­ment sys­tem for fed­er­ally qual­i­fied health clin­ics and ru­ral clin­ics, from its cur­rent cost-and-vol­ume ap­proach, could pose oper­a­tional chal­lenges for ru­ral providers with lim­ited re­sources. The as­so­ci­a­tion also wants to work closely with the state as it works to in­crease the num­ber of state-cov­ered res­i­dents us­ing man­aged care and com­bines ser­vices pro­vid­ing care for those on both Med­i­caid and Medi­care (See re­lated story, p. 6).

AP PHOTO

The Cal­i­for­nia Hos­pi­tal As­so­ci­a­tion took is­sue with where Brown’s pro­posed Med­i­caid cuts are aimed.

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