Lincoln Protects Arkansas Hospitals
Press Release
Proposal included in Senate bill prevents more than $15 million in funding cuts
Hospitals praise Lincoln for preserving Medicare revenues
U.S. Senator Blanche Lincoln (D-Ark.) today announced that eight Arkansas hospitals will be protected under an amendment she secured in the revised Senate health plan. Her proposal prevents scheduled Medicare payment cuts proposed by the Centers for Medicare and Medicaid (CMS) that put 250 hospitals throughout the United States at a disadvantage, including hospitals in Mountain Home, Forrest City, Blytheville, Helena, Jonesboro, Batesville, Paragould, and Harrison.
In 2008, CMS implemented new guidelines for determining Medicare rates for hospitals. Lincoln's amendment would temporarily suspend these new regulations until CMS completes its ongoing study on improving the Medicare hospital wage index, and preserve funding that many hospitals have been receiving for nearly 20 years.
These eight Arkansas hospitals have historically qualified for Medicare geographic reclassification, which entitles them to higher Medicare payments that more fairly compensate them for their higher labor costs. Under the change implemented by CMS in 2008, one of these hospitals failed to qualify for these higher payments in 2009, another three would fail to qualify in 2010, and another four were in serious jeopardy of not qualifying in future years. The change included by Senator Lincoln in the Senate's reform bill ensures that all eight hospitals will continue to qualify for reclassification starting in 2010, and not incur a disruption in their Medicare revenues.
"A temporary suspension of this change was necessary because CMS is still studying how best to reform how Medicare compensates hospitals for their labor costs," Lincoln said. "Until a complete review of its policy is conducted, it would be irresponsible for CMS to cut a crucial source of funding for Arkansas hospitals, especially during these difficult economic times."
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