U.S. safety-net hospitals are warning Congress about the potential financial effects the novel coronavirus could have on them without action from legislators.
The warning came from America's Essential Hospitals, an industry trade group representing 300 hospitals nationwide that serve large numbers of uninsured, Medicaid and Medicare patients.
"We're sounding the alarm," Bruce Siegel, MD, the group's president and CEO, said in an interview March 18 with Becker's Hospital Review.
"Safety-net hospitals have particular challenges they face. Many of our hospitals are already losing money [from before the coronavirus pandemic], many have very little cash on hand, and now they're going to see a spike in uncompensated care as people without coverage come to them for screening, treatment, all the things they will need as the pandemic accelerates," he said, noting that safety-net hospitals will also be forced to cancel elective procedures, which help keep their doors open.
Dr. Siegel raised these and other concerns in a March 17 letter to top Senate and House leaders. He praised lawmakers for actions already taken regarding emergency legislation to respond to COVID-19, the disease caused by the coronavirus. He said those actions, such as the House passing an $8.3 billion emergency funding bill, will help safety-net hospitals meet the immediate needs of their communities in preparing for and responding to the pandemic. But he urged lawmakers to intervene further by providing hospitals with immediate economic relief through direct financial assistance and Medicare and Medicaid policy changes.
Amid the coronavirus outbreak, safety-net hospitals are specifically asking Congress to suspend an upcoming 2 percent Medicare payment cut mandated under federal sequestration. They are also asking that Congress ensure stable Medicaid funding is available to maintain care access and ensure provider payments during the outbreak. Dr. Siegel said ways to ensure stable Medicaid funding could include stopping the $4 billion in impending cuts to Medicaid Disproportionate Share Hospital payments from taking effect for at least two years. The cuts are currently slated to take effect on May 23. Additionally, safety-net hospitals want Congress to block CMS from finalizing its proposed Medicaid Fiscal Accountability Rule — which establishes new reporting requirements for state supplemental payments to Medicaid providers.
Dr. Siegel said America's Essential Hospitals will be part of discussions in the Senate and House moving forward.
Read the group's full letter here.