It’s that time of year when we finally begin to enjoy cooler weather, football weekends and, well, annual fiscal cliffs. Why is this year different? Critical decisions surround the three fiscal cliff deadlines.
Hospitals have experienced significant reimbursement reductions over the past three years, including two percent sequestration cuts. The 2014 inflation rate adjustment of 2.5 percent is offset by productivity adjustments, the American Taxpayer Relief Act and coding adjustments. Therefore, hospitals will receive less reimbursement in 2014 than 2013, especially with Medicaid reductions before we even deal with fiscal cliff cuts.
Akin to an aggressive defense, Washington’s political leaders must tackle the passing of a continuing resolution for fiscal 2014 before the October 1 deadline. They must authorize an increase in the nation’s debt ceiling by mid-October. Finally, they must make a goal-line stand by December 31 and fix the Medicare physician payment formula.
These tasks will be difficult as legislators determine government funding, sequestration cuts and physician payments for equitable compensation.
The hospitals of North Texas hope Congressional leaders understand these fiscal flashpoints cannot be funded on their backs. There is only so much weight they can lift. Hospitals have given their fair share and they must be part of the fiscal cliff solution. Teamwork is required. Providers need fair reimbursement as continued cuts will impact patients.
It is the mission of all hospitals to provide quality healthcare services no matter the situation. But hospitals will be forced to be selective in services they offer patients. They will need to discontinue programs and close clinical product lines. This will limit a patient’s access to healthcare.
Like dedicated teams on the playing fields of America, let’s work collaboratively for fiscal cliff solutions.
Fall, Football and Fiscal Cliffs
09/18/2013