On August 27, 2009
Hospitals Expect Financial Gains From Reform
Hospital leaders knew exactly what they were doing when they struck a deal with the Obama Administration on healthcare reform a few months ago. When the American Hospital Association, the Federation of American Hospitals and the Catholic Health Association pledged to accept $155 billion in Medicare cuts over 10 years, they knew that an expansion of insurance coverage would increase their revenues by $171 billion, for a net gain of $16 billion. In the cost-cutting agreement, the hospital groups agreed to a gradual reduction of $50 billion in government payments for treating the uninsured. The pact also assumed that procedural changes by the feds would lead to a $2 billion cut in payments for readmissions. The other $103 billion…
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