Rich Umbdenstock,
President,
American Hospital Association
President,
American Hospital Association
Bush Budget Bashed by AHA, AMA
February 06, 2007
by Barbara Kram, Editor
Washington D.C.
Monday, February 5, 2007
The following statement is by
Rich Umbdenstock
President, American Hospital Association:
Today's budget is devastating news for children, seniors and the disabled who depend on the Medicare and Medicaid programs. They are being unfairly singled out to carry the burden of achieving a balanced budget. The proposed budget includes a tidal wave of cuts that will inflict real damage on hospitals' ability to care for these patients. America needs policies that shore up these programs, not damage them further. The AHA strongly opposes those provisions and urges Congress to reject them.
Today, Medicare and Medicaid payments to hospitals remain well below the cost of providing care to patients. While the Administration's budget proposes to limit hospital reimbursement, the costs of caring for patients continue to increase. Hospitals absorb many costs that they are simply unable to control such as prices for drugs, medical devices and supplies.
At the same time, hospitals need to make significant investments to prepare to respond to disasters both natural and manmade, update facilities and technologies to better care for an increasingly aging population, and upgrade information technology for patient safety. This is at a time when hospitals face increasing labor costs due to a shortage of health care workers. Against this backdrop, hospitals serve as the community's safety net providing free and subsidized care to an increasing number of uninsured.
Our nation's health care "system" faces very serious challenges. Today's budget does nothing to address the underlying challenges. The real answer lies with comprehensive reforms that address coverage for all, coordination of care and wellness.
About AHA
The American Hospital Association (AHA) is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which includes more than 4,800 hospitals, health care systems, networks, and other providers of care, and 37,000 individuals. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA Web site at www.aha.org.
***
The following statement is by
Cecil B. Wilson, MD
AMA Board Chair:
"The AMA is deeply disappointed that President Bush has once again ignored an opportunity to right the wrongs in the current Medicare physician payment system by failing to call on Congress to stop the cuts and provide payments in line with practice costs. Current average Medicare payments to physicians are about the same as in 2001, and next year's reimbursement will be cut 10 percent - unless Congress intervenes.
"Over the next eight years, Medicare payments to physicians will be slashed nearly 40 percent, while practice costs increase about 20 percent. Without adequate funding, physicians cannot make needed investments in health information technology and quality improvement, and seniors' access to health care is placed at risk.
"As we work to provide health care coverage to all Americans, cutting funding for SCHIP is the wrong way to go. Currently there are nine million uninsured children, and nearly seven million of these kids are eligible for enrollment in government health care programs. This proposal ties states' hands by narrowly focusing the program as they work on innovative ways to provide health care coverage for more of the uninsured.
"The AMA will continue its work with the Administration and Congress on public health issues to benefit the American people."
Monday, February 5, 2007
The following statement is by
Rich Umbdenstock
President, American Hospital Association:
Today's budget is devastating news for children, seniors and the disabled who depend on the Medicare and Medicaid programs. They are being unfairly singled out to carry the burden of achieving a balanced budget. The proposed budget includes a tidal wave of cuts that will inflict real damage on hospitals' ability to care for these patients. America needs policies that shore up these programs, not damage them further. The AHA strongly opposes those provisions and urges Congress to reject them.
Today, Medicare and Medicaid payments to hospitals remain well below the cost of providing care to patients. While the Administration's budget proposes to limit hospital reimbursement, the costs of caring for patients continue to increase. Hospitals absorb many costs that they are simply unable to control such as prices for drugs, medical devices and supplies.
At the same time, hospitals need to make significant investments to prepare to respond to disasters both natural and manmade, update facilities and technologies to better care for an increasingly aging population, and upgrade information technology for patient safety. This is at a time when hospitals face increasing labor costs due to a shortage of health care workers. Against this backdrop, hospitals serve as the community's safety net providing free and subsidized care to an increasing number of uninsured.
Our nation's health care "system" faces very serious challenges. Today's budget does nothing to address the underlying challenges. The real answer lies with comprehensive reforms that address coverage for all, coordination of care and wellness.
About AHA
The American Hospital Association (AHA) is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which includes more than 4,800 hospitals, health care systems, networks, and other providers of care, and 37,000 individuals. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA Web site at www.aha.org.
***
The following statement is by
Cecil B. Wilson, MD
AMA Board Chair:
"The AMA is deeply disappointed that President Bush has once again ignored an opportunity to right the wrongs in the current Medicare physician payment system by failing to call on Congress to stop the cuts and provide payments in line with practice costs. Current average Medicare payments to physicians are about the same as in 2001, and next year's reimbursement will be cut 10 percent - unless Congress intervenes.
"Over the next eight years, Medicare payments to physicians will be slashed nearly 40 percent, while practice costs increase about 20 percent. Without adequate funding, physicians cannot make needed investments in health information technology and quality improvement, and seniors' access to health care is placed at risk.
"As we work to provide health care coverage to all Americans, cutting funding for SCHIP is the wrong way to go. Currently there are nine million uninsured children, and nearly seven million of these kids are eligible for enrollment in government health care programs. This proposal ties states' hands by narrowly focusing the program as they work on innovative ways to provide health care coverage for more of the uninsured.
"The AMA will continue its work with the Administration and Congress on public health issues to benefit the American people."