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Copyright 1999 The Atlanta Constitution  
The Atlanta Journal and Constitution

June 7, 1999, Monday, Final Edition

SECTION: Editorial; Pg. 10A

LENGTH: 570 words

HEADLINE: FUNDING IN PERIL;
Teaching hospitals deserve helping hand from everyone

BYLINE: Martha Ezzard, Staff

SOURCE: Journal

BODY:
When Stephanie Laster, the teenager most seriously injured in the Heritage High School shooting, was rushed to emergency medical treatment, she was taken to Atlanta's Grady Memorial Hospital, which offers the best trauma care in the region. And the surgeon who operated on her was from Morehouse School of Medicine, which along with the Emory University School of Medicine places top faculty and approximately 420 resident physicians at Grady.

Grady, in fact, has trained approximately 25 percent of the physicians practicing in Georgia. But like other teaching hospitals around the country, it's in serious financial trouble. There are reasons enough to fault Grady for inefficient management, but fixing those problems won't save it. Like other teaching hospitals, Grady is bleeding millions annually. Blame a combination of factors, the most crucial of which is huge cuts in Medicare. Medicare reimbursement formulas have always allocated substantial funds for graduate medical education at the nation's 1,600 teaching hospitals.

The Balanced Budget Act of 1997 turned that upside down. It slashed funding by $ 6 billion over five years, $ 16 billion over 10. Last year, Grady was $ 5 million short. According to Adolph Mallory, Grady public affairs officer, the hospital will lose $ 42.2 million in Medicare and $ 12.2 million in Medicaid medical training funds by 2001. Some of the nation's premier clinical research centers have lost even more.

Some policy makers shrug and declare that resident physicians can be placed at other hospitals if the public teaching institutions go under. But the patient load and variety that Grady receives are crucial to developing doctors' competency in trauma care and surgery.

Fortunately, Sen. Daniel Patrick Moynihan (D-N.Y.), a long-time champion of medical education, is fashioning legislation to restore half of the funding cuts for teaching hospitals. Georgia Sen. Max Cleland is a co-sponsor of three related bills. Two of them deal with cuts that may have been inadvertent, caused by the failure of managed care corporations to contract with teaching hospitals.

Grady has also faced reductions in local government reimbursements. Over the past five years, Fulton and DeKalb counties have decreased their funding to Grady for indigent care by $ 23 million. And 48 percent of all patients treated by Grady last year had no insurance.

In the old days, private insurance subsidized hospital costs for indigent care. Along came prospective reimbursements that predetermine the maximum cost of every procedure. Then came for-profit managed care, as beholden to stockholders as to patients. It contributes almost nothing to indigent care.

The old way may not have been fair, but the new way has seemingly intractable problems. Bearing the brunt are our teaching hospitals, the incubators of medical advances that have made U.S. health care the envy of the world.

There's been little public debate on the issue of paying for medical education --- especially the training of resident physicians, 80 percent of whom leave medical school with individual debts greater than $ 100,000. But every participant in the system should pay a little. That means for-profit managed care companies, and it means all of us.


E-mail: mezzard@ajc.com

Martha Ezzard is a member of the Journal's editorial board. Her column runs in the Journal on Sunday and Monday.

LOAD-DATE: June 8, 1999




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