LJWorld.com

• Email
• Comments (3)
• iPod-friendly
• Print

New health care rules from the Washington, D.C., Centers for Medicare and Medicaid Services could cost Kansas University Hospital $30 million or more from its budget in the upcoming year.

Legislation before the U.S. Congress seeks to prevent that from happening, but if action isn’t taken by May 25, the cuts could take effect. The new rules, proposed by the Bush administration, caught the attention of members of the KU Hospital Authority leadership and other leaders of academic medical centers nationwide.

The rules “would arbitrarily limit the reimbursement to public hospitals,” KU Hospital Chief Financial Officer Scott Glasrud said. “There are a number of reasons why public hospitals need those matching funds.”

Among the primary reasons, Glasrud said, a large portion of the health care provided to the uninsured in Kansas City and northeastern Kansas is provided by KU Hospital. Without federal reimbursements, the hospital would have to find a way to fund that care on its own — or provide less of the care for which it is not paid.

President Bush is seeking Medicare cuts that will be worth $6 billion this year and as much as $90 billion between now and 2013. Medicaid cuts would total $1.2 billion this year and $14 billion by 2013.

KU Hospital’s share of that would be perhaps as much as $30 million per year.

“We’re really small potatoes compared to the effect this would have nationwide,” Glasrud said. “It would be a substantial hit for us, but it would be life and death for other hospitals.”

The National Association of Public Hospitals and Health Systems has also come out strongly against the proposal. They are leading a lawsuit against the federal government that would seek to stop the government from implementing its new rules.

“This regulation, together with a number of others proposed in the last several months by CMS, would do nothing less than diminish the historic role of the Medicaid program as a vital safety net for low income children and families,” Larry S. Gage, NAPH president, said in a statement. “We believe — and our lawsuit maintains — that this devastating action is beyond the scope of CMS’ regulatory power under current federal law.”

The White House claims Medicare payments to teaching hospitals are excessive. The White House has been trying to implement these changes — through an administrative rule change — for several years but has been thwarted by Congress each time.

In addition to damaging the financial situation of KU Hospital, the proposed cuts would also damage funding for the state Medicaid system, Glasrud said, because KU Hospital pulls in extra dollars that are passed on to the state.

“But that’s necessary to fund the care provided in Kansas, particularly uncompensated care,” he said. “It helps bring money to all the hospitals in Kansas.”