With our national focus once again returning to the domestic policies that are guiding the future of the nation and the health care industry, it is evident that the challenges facing hospitals are increasing. Government deficits are reaching new levels and legislative bodies are forced into making dramatic cuts to the longstanding safety net for our society’s most vulnerable citizens.

In April, the Commonwealth of Massachusetts ended MassHealth coverage for more than 40,000 people in response to significant budget gaps in the current fiscal year. As a result, the number of uninsured has grown substantially and placed an enormous and untimely burden on the fragile free care pool. As the state examines new channels to cut spending to resolve a $3 billion deficit for the coming fiscal year, Medicaid cuts are expected to harshly affect academic medical centers like BWH.

At BWH alone, it is estimated that the combined impact of Medicaid, Medicare and uncompensated care pool losses will result in an $18 million negative impact on our margin during this fiscal year and another $38 million in FY 2004.

As we begin the FY 2004 budget process, we recognize that the challenges we face are very real and will test our ability to resolve. We must bear in mind the direct impact of these cuts as we move forward. However, we can continue to build upon our strong legacy and rely upon the strength of our organization built over years of focused dedication to doing what is right for our patients.

I continue to take pride in our ability to deliver the very best care despite such financial constraints.

Sincerely,

Nancy Kruger, DNSc, RN
Vice President, Patient Care Services
Chief Nursing Officer