Hospital groups have agreed to support a proposal to reduce federal healthcare spending by $155 billion over the next 10 years, announced Vice President Joe Biden today. Biden was joined by leaders of the Hospital Corporation of America, Community Health Systems, Catholic Health Association, and American Hospital Association.
The majority of the savings will come from reducing the rate of increase of Medicare and Medicaid payments to hospitals. These reductions "will be more than offset as health reform takes hold and hospitals bear less of the financial burden of caring for the uninsured or underinsured," said Biden. The proposal was developed by hospital groups working with Senate Finance Committee Chairman Max Baucus, with the goal of using the savings to finance healthcare reform.
"Enacting meaningful healthcare reform, including expanding health insurance coverage, is something everyone supports," commented HFMA President and CEO Richard L. Clarke, DHA, FHFMA. "To keep reform efforts on track, significant funding issues must be addressed. HFMA welcomes specific proposals for all stakeholders to share the financial responsibilities of reforming our healthcare system, including proposals that address not only spending reductions but also incentive alignment and other important aspects of payment reform. Along with these proposals there must be significant progress on the many challenges facing hospital leaders, as well as an appropriate transition period. Today's announcement by the Vice President and hospital groups is a concrete start and a powerful reminder to hospitals that they need to critically examine their business strategies to ensure they can provide high-value care and service in the changing payment landscape."
