Copyright 2000 Globe Newspaper Company
The Boston
Globe
December 21, 2000, Thursday ,THIRD EDITION
SECTION: EDITORIAL; Pg. A18
LENGTH: 434 words
HEADLINE:
HELP FOR AILING HOSPITALS
BODY:
THE MASSACHUSETTS
Hospital Association makes a strong case that state Medicaid reimbursements are
far too low for this essential care. Hospitals deserve higher Medicaid rates,
but, as the state helps the hospitals, it should not lose sight of Medicaid's
prime health-care goal - to extend health
insurance coverage to the needy.
The hospital association, supported by
studies that show Medicaid covers only 80 percent of costs, wants this raised to
100 percent in two increments totaling $150 million a year
(half reimbursed by the federal government). It also wants to increase the state
share of the uncompensated care pool by $100 million a year.
All hospitals pay into the pool, which subsidizes institutions that
disproportionately care for the uninsured.
Each proposal has merit, but together they would reinforce a
cost structure that is weighted toward expensive teaching hospitals. These
educational and research institutions are national assets and linchpins of the
Boston economy, but they are not efficient providers of routine care. Teaching
hospitals need to devise strategies to encourage patients to go willingly to
community hospitals when appropriate.
Replenishing the uncompensated
care pool with state money is not an unambiguous good. It could encourage people
to go to hospitals for treatment even if the money would have been better used
for health insurance and preventative care.
The Cellucci administration
is trying to find the right mix of remedies to include in next year's budget
proposal. Stephen Crosby, the secretary of administration and finance,
acknowledged yesterday that this will not be an easy task. "We also believe the
cost structure of the hospitals still needs continuing adjustment," he said.
Any solution could be affected by the current economic slowdown.
"Baseline [state] revenue growth in July, August, and September averaged 14.8
percent," Crosby said. "In October and November, it was 3.2 percent. The
downturn is definitely occurring. How big it is, nobody knows."
The
Massachusetts Health Care Task Force, now examining the entire state system, may
call for a permanent small group to propose improvements to Beacon Hill. It
would be useful for this group to take on the hospital cost issue as a long-term
project.
Also next year, the Legislature will consider a bill to
increase the cigarette tax by 50 cents, providing more resources for health
insurance. The governor and Legislature need to make progress on two sound
policy goals: helping out the hospitals and getting health insurance to those
who need it.
LOAD-DATE: December 22, 2000
