Wait for it. The next bailout will be for hospitals devastated by cut-backs as a result of Obamacare.
In Rhode Island, the prognosis already is not good for the survival of hospitals already struggling financially, which may be pushed over the brink. As reported by The Providence Journal (emphasis mine):
While some experts are predicting better times for hospitals from the national health-care overhaul, an analysis conducted for the Hospital Association of Rhode Island predicts that the state’s 11 acute-care hospitals stand to lose $465.7 million over the next 10 years.
The study found that any gains from more patients coming through the doors with insurance will be more than offset by cuts in payments the hospitals receive from the federal government, according to Edward J. Quinlan, the association’s president.
Most of the loss, about $400 million, will be in the form of reduced Medicare payments, according to a review conducted for the association. Medicare payments are adjusted annually, but due to changes in the new law, “in essence, you’d be getting less than inflation,” Quinlan said.
One of the many provisions likely to cause problems is the reduction in payment for readmissions of patients:
Medicare will also cut how much hospitals get paid for patients who need to be readmitted, as a way to encourage higher quality care on the first visit.
I highlighted this problem in a post in early September, Throwing Darts at HR3200 – Day 5 (Cutting Hospital Readmissions):
While lowering “excess” readmissions is an admirable goal, penalizing hospitals and excluding individual patient readmissions based on macro-level statistics is a blunt instrument.
When the hospital bailout talk arrives, call it what you want, but just don’t call it “unexpected.”
——————————————–
Follow me on Twitter and Facebook
CLICK HERE FOR FULL VERSION OF THIS STORY