Boston-Area Safety-Net Hospitals To Lose Some Reimbursements For Charity Care

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Public Health
Article Date: 21 Oct 2008 - 5:00 PDT

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Massachusetts officials on Thursday said budget cuts will deprive two Boston-area safety-net hospitals of millions of dollars in Medicaid reimbursements for care delivered last fiscal year, the Boston Globe reports. The payments, scheduled to end Jan. 1, 2009, had been earmarked for Medicaid reimbursements to hospitals as part of the Massachusetts Health Insurance Law in 2006. However, they are being eliminated as part of more than $200 million being cut from Medicaid payments. Juan Martinez, a spokesperson for Gov. Deval Patrick (D), said the cuts "allowed us to preserve all currently funded MassHealth populations and services. We understand the important role these hospitals play and remain committed to supporting them as best we can through this difficult economic time for everyone." MassHealth is the state's Medicaid and SCHIP program.

Boston Medical Center provided care to 150,000 Medicaid beneficiaries last year, while Cambridge Health Alliance treated more than 50,000 Medicaid patients in the last fiscal year. Boston Medical has been told it will not be reimbursed for $64 million worth of care delivered and Cambridge Health will not receive $40 million it had been expecting, according to officials. Boston Medical also will face an additional $12 million in cuts announced Wednesday as part of Patrick's plan to close a $1.1 billion budget gap. Tom Traylor, vice president of federal and state programs at Boston Medical, said the hospital is deciding which programs for low-income patients will be eliminated. Potential reductions include interpreter services, transportation to the hospital, and asthma, diabetes or primary care, according to Traylor.

According to the Globe, Boston Medical is a priority for Mayor Thomas Menino's administration and he is concerned about the effects of the cuts on residents. Menino said, "Regardless of the changes in health insurance, there will always be many, many people who are not covered at all or not adequately, and BMC continues to be the safety net for all those people," adding, "We would like to see the state work closely with the medical center to ensure their mission is protected" (Lazar/Smith, Boston Globe, 10/17).

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