The American Hospital Association is pushing Congress to pass legislation to again suspend Medicare sequester cuts.
Federal COVID-19 relief signed into law in March 2020 included sequestration of those cuts, but that moratorium has since expired. One percent cuts were imposed this year from April 1 through June 30. As of July 1, 2 percent cuts were reimposed.
With hospitals facing "crushing financial challenges," Medicare payment reductions to providers are particularly damaging, the AHA said in a Sept. 13 letter.
The letter also said labor costs accounted for more than 50 percent of hospitals' total expenses before the pandemic. By the end of 2021, hospital labor expenses per patient were 19.1 percent higher than pre-pandemic levels.
"There is no way to plan for these increases, particularly in a field that routinely struggles to break even," the group said in the letter. "This financial instability threatens access to care for patients and communities. Without a critical lifeline from Congress, hard choices will need to be made regarding services, staffing and patients' access."