Thirty-six states around the USA are currently suffering from budget shortfalls. Each state is trying to counter with a mess of “increase taxes, decrease taxes, increase spending, decrease spending,” etc, etc.
Minnesota appears to be trying to make back much of its shortfall by directly targeting hospitals and clinics. Latest proposals could impact hospitals by as much as 6% of their annual revenue. For many hospitals, this completely wipes out profits and even takes them into the red.
If you think that HealthIT is safe from these cuts due to the Obama “EHR Stimulus”, you will find yourself sadly mistaken. The Obama stimulus plan won’t push in until 2011, has a 4 year payout, and only accounts for approximately half of the cuts in this budget.
The following numbers come directly from the Austin Medical Center – Mayo Clinic Health System member. They show the huge impact organizations will undertake in 2010-11 if this budget is passed:
|
Pg |
Program Expenditure |
Governor’s State Savings Amount |
Statewide Estimated Hospital Impact (state & federal share) |
Austin Medical Center – Mayo Health System Austin |
| 97 | Eliminate health care eligibility for adults w/o children in GA-Hospital-only, transitional Mncare and MnCare adults w/o children |
$508.1 m |
$409.5 m |
-$2,992,742 |
| 99 | Eliminate MnCare eligibility for parents |
$65.7 m |
$52.6 m |
-$389,439 |
| Subtotal indirect cuts |
$573.8 m |
$462.1 m |
-$3,382,182 |
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| 96 | Basic care 3% ratable reduction (applies to physicians and other non-hospital health care providers) |
$96.3 m |
$56.1 m |
-$318,678 |
| 118 | Delay 2011 inpatient rebasing 3 months |
$21.4 m |
$40.5 m |
-$187,375 |
| 128 | Eliminate inpatient quarterly Medicaid payments |
$36.3 m |
$72.6 m |
-$278,414 |
| 126 | Eliminate rural 16-DRG add-on |
$7.3 m |
13.9 m |
-$289,758 |
| 122 | Reduction in MERC payments |
$18.1 m |
$14.5 m |
-$65,174 |
| 124 | Mental Health ratable reduction 6% |
$16.8 m |
$31.8 m |
-$147,032 |
| Subtotal direct cuts to hospitals |
$196.2 m |
$229.4 m |
-$1,286,432
|
|
| Grand Totals |
$770.0 m |
$691.5 m |
-$4,668,613 |
