Saturday, December 12, 2009
Senate-driven Medicare cuts could drive away hospitals, providers from Medicare
Back in 1989 I worked for the ancestor of today’s company Lewin, and even then it focused on hospital operating margins for Medicare, as could broken down into tables and all kinds of categories (DRG, case-mix, rural/urban, etc). I even worked on the “model”. No, I won’t give away any “secrets” – just say that companies around the Beltway get paid to watch this sort of thing. The issues certainly must be alive today after, on Dec. 11, Rick Foster, chief actuary for the Centers for Medicare and Medicaid Services, warned that Medicare cuts proposed by the Senate to help pay for health care reform could drive many providers from Medicare or make them unprofitable. That’s a little odd; the CMS home page (here) links to reports or others sites obviously supported by the Obama administration regarding health reform.
Lori Montgomery has the main story on p A3 of the Saturday Dec 12 Washington Post, “Medicare cuts could hurt hospitals, expert warns,” link here.
This is all ironic given that the Senate also proposes letting pre-seniors at 55 buy in to Medicare.
Here is the current link for Lewin’s published studies on Medicare.
Picture: Virginia Hospital Center in Arlington in winter (recently completed, late 2004).