On Beacon Hill …
State Budget is Up for Debate…

After the State House of Representatives presented their version of the State budget for fiscal year 2003, the State Senate released their version. As a result, there is some negotiating that has to occur before the budget can be finalized. Members of the House and Senate began to debate the two versions of the budget during the week of June 10.

From a hospital standpoint, the most important discrepancies in each version centered around three issues—Uncompensated Care Pool Relief, Medicaid eligibility changes, and Medicaid rate relief for hospitals and physicians. The House and Senate’s proposed figures for each of these budget items are highlighted in the chart above.

In fiscal year 2001, BWH’s uncompensated care pool expenses totaled $14 million and the hospital’s Medicaid losses reached $18 million. BWH physicians experienced an additional $2.8 million loss due to poor Medicaid reimbursements.

Look for more updates on the State’s budget process in upcoming issues of BWH Medical Staff News.

In Washington…
Ways and Means chairman adds hospital relief to his drug bill...

In an effort to move legislation forward, HouseWays and Means Chairman Bill Thomas (R-CA) agreed to add $9 billion (over ten years) in Medicare funds for hospitals to his prescription drug bill. Those funds support a 6.0 percent IME payment (it is currently 6.5 percent, scheduled to drop to 5.5 percent and Thomas had previously proposed 5.8 percent) and a more generous inpatient inflation adjustment (market basket minus 0.25 percentage points rather than 0.55). The American Hospital Association has come out in support for the measure. The two percent physician rate increase, Medicare+Choice funds, and postponed home health also cut remain in the package.