CRANSTON – With the Nov. 23 deadline approaching for the Congressional Super Committee to reach agreement on plans to cut the federal deficit by $1.2 trillion, the Hospital Association of Rhode Island conducted an analysis of options that the Super Committee may be considering – and the consequences for Rhode Island hospitals.
In its latest “Tracking Trends” publication, HARI said that the projected cuts now under consideration could add up to about $614.2 in cuts over the next decade for hospitals in Rhode Island.
Cuts of $69 to $104 million by phasing down or phasing out bad debt payments.
Cuts in indirect medical education funds between $65 and $391 million, depending on how severe the percentage of reductions.
Cuts in direct graduate medical education reimbursement of $75 million.
Cuts of $18 million as a result of an eight-year freeze in post-acute care rehabilitation “market basket” updates.
A more draconian form of cuts will result if the Super Committee fails to achieve the targeted savings amount – or should Congress fail to pass and the president sign its recommendations by Dec. 23. This will trigger across the board cuts in federal spending, including up to a 2 percent reduction on total Medicare payments to go into effect in 2013 and run through 2021. This would result in $122 million in reduced payments to hospitals in Rhode Island, according to HARI.
“Hospital jobs – jobs that stay in our local community – are under assault,” according to HARI’s document, which said that more than 20,000 people work in hospitals, “from doctors and nurses to pharmacists and food workers.”
Congressional Super Committee,
Hospital Association of Rhode Island conducted