The American Hospital Association released a statement that it is “deeply disappointed and concerned” that the Obama administration has proposed cuts of more than $220 billion to hospitals, in addition to the $41 billion in cuts to Medicare already proposed. Click title to read more…

Rich Umbdenstock, AHA’s president and CEO, singled out cuts to Medicare and Medicaid Disproportionate Share Hospital (DSH) programs. “Even with today’s DSH payments, federal health programs pay hospitals more than $32 billion below the cost of caring for patients on average,” said Umbdenstock. “These programs go beyond covering care for the uninsured and serve as a lifeline to hospitals struggling to meet the growing needs of patients and communities. Because of that, we urge lawmakers not to cut DSH programs before coverage expansions are universal and fully implemented as part of reform, and Medicare and Medicaid shortfalls are addressed.”

Umbdenstock also said a proposed productivity adjustment for hospitals “does not make sense” because the measure was not intended for health care. “Instead, our focus needs to be on ensuring that patients receive the right care at the right time in the right setting,” said Umbdenstock. “In addition, the new proposals for long-term care and rehabilitation hospitals are problematic and could serve as a barrier to better coordination of care for patients. Reform must improve care for patients without crippling hospitals’ ability to care for patients and communities.”

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