State Budget Accounts for Hospital Needs
As of November 21, Massachusetts relinquished its reign as the only state without an operating budget as the legislature finally approved the fiscal year 2002 state budget. The budget contains some much-needed financial relief for hospitals.
Totaling $22.3 billion, the budget includes $45 million in hospital assessment relief to the uncompensated care pool, $15 million for improved Medicaid payments to hospitals, as well as another $15 million for “distressed hospitals.” The budget also contains funds to cover uncompensated care pool shortfalls in FY 01 and 02.
“We are heartened that relief to the Massachusetts health care system was not overlooked, especially during a budget process in which particularly tough decisions on cuts had to be made,” said Jeff Otten, president, BWH. “This was a result of a great team effort of advocacy by Partners’ senior staff and hospital CEOs throughout the State.”
Despite an economic slowdown, hospitals—which studies show are losing $200 million in Medicaid underpayments alone each year—will benefit from the commitment to health care shown during this budget process.