Lincoln: Health Reform Legislation Protects Arkansas Hospitals, Prevents More Than $15 million in Funding Cuts
Press Release
U.S. Senator Blanche Lincoln (D-Ark.) today said that eight Arkansas hospitals will be protected under an amendment she secured in the Senate health plan, which was passed by the U.S. House of Representatives yesterday and is expected to be signed into law by the President tomorrow morning.
Lincoln's 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 health 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."
Officials at Baxter Regional Medical Center in Mountain Home, which faces $3.2 million in Medicare losses under the changes proposed by CMS in 2008, said the changes would force them to consider reducing uncompensated care, cutting back services or laying off employees. Also, North Arkansas Regional Hospital stands to lose as much as $1 million in Medicare revenues under CMS's proposed payment cuts, which would restrict the hospital's ability to purchase new equipment and provide services.
"We applaud Senator Lincoln's efforts to reinstate our reclassification status and her recognition of this unfair change," said Pete Leer, senior Vice President of the North Arkansas Regional Medical Center in Harrison. "We are most appreciative of Senator Lincoln's leadership and steadfast support of Arkansas hospitals."
"Thanks to Senator Lincoln's tireless efforts with health care reform, key provisions impacting Medicare reimbursement will be restored helping St. Bernards continue its formal mission of providing Christ-like healing to residents of Northeast Arkansas and Southeast Missouri," said Ben Owens, CEO of St. Bernards Medical Center in Jonesboro, which stands to lose $5 million. "Senator Lincoln has taken a leadership position on this legislation, and because of her leadership, health care providers have a better chance for equitable reimbursement for the services they deliver to their patients."
These eight Arkansas hospitals will be spared the following Medicare payment cuts due to Senator Lincoln's amendment:
o Baxter Regional Medical Center, Mountain Home, $1,824,762
o Forrest City Medical Center, Forrest City, $354,916
o Great River Medical Center, Blytheville, $358,745
o Helena Regional Medical Center, Helena, $588,925
o St. Bernards Medical Center, Jonesboro, $5,353,966
o White River Medical Center, Batesville, $2,040,143
o Arkansas Methodist Medical Center, Paragould, $607,520
o North Arkansas Regional Medical Center, Harrison, $1,078,857
Fighting for Rural Health Care Providers
In addition to her work protecting these Arkansas hospitals from Medicare payment cuts, Lincoln secured the following provisions for Arkansas's rural health care providers:
* Senator Lincoln fought to ensure that hospitals serving a disproportionate proportion of Medicaid and Medicare beneficiaries will have increased federal "disproportionate share hospital," or "DSH," funding in the final bill than under previous proposals. In a state like Arkansas with high proportions seniors and of low-income individuals, hospital DSH funding is critical to preserve the health care safety net in our state.
* Senator Lincoln secured a package of rural health care protections, including Medicare Rural Hospital Flexibility grants for rural health care providers' use in providing quality care and strengthening their health care networks, bonus payments in Medicare to help shore up home health (through a Medicare "rural add-on" payment) and ambulance providers serving hard-to-reach seniors in rural areas, as well as other support for rural health care facilities and providers.
* Based on the "Retooling the Health Care Workforce for an Aging America Act" co-sponsored by Senator Lincoln, the Senate health plan creates a Workforce Advisory Committeethat would develop and present a national workforce strategy to the Secretary and the Congress to set the nation on a path toward recruiting, training, and retaining a health workforce that meets our nation's needs. It establishes a demonstration grant program through competitive grants to provide aid and supportive services to low-income individuals with the opportunity to obtain education and training for occupations in the health and long-term care fields.
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