Some Massachusetts Safety Net Hospitals Face Budget Problems Because of Health Insurance Law
Many Massachusetts safety net hospitals in urban areas say they are facing budget shortfalls and have been forced to cut back on investing in new equipment because payments for charity care are being phased out under the state health insurance law, the Boston Globe reports. Ellen Murphy Meehan, executive director of the Alliance of Massachusetts Safety Net Hospitals, and other hospital officials say a large percentage of patients seeking care at safety net hospitals remain uninsured, and hospitals still must treat such patients, although they no longer receive funds to provide the care.
Murphy Meehan said that central to the problem is the relatively slow enrollment in Commonwealth Care, the state-subsidized insurance plan for people who do not qualify for Medicaid but cannot afford coverage, the Globe reports. Murphy Meehan said, "We are hopeful that Commonwealth Care will be more successful in enrolling residents in our communities. In the meantime, we need to have payments that reflect the basic care we provide. We need the state to carefully monitor the amount of care we're providing to the uninsured."
Massachusetts Health and Human Services Secretary JudyAnn Bigby said the state is working to assist safety net hospitals. According to Bigby, the state anticipated the transition period, and many hospitals are receiving subsidies to assist them in the interim. She said, "We are looking at the financial status of these institutions to understand what the impact is," adding, "These hospitals aren't all identical." She also said that because of the health insurance law, some hospitals are experiencing "better margins that they had in the past" (Krasner, Boston Globe, 3/18).
