Statement from Lynn Nicholas, FACHE, President & CEO, Massachusetts Hospital Association on Governor Deval Patrick’s Proposed FY2011 Budget

FOR IMMEDIATE RELEASE	Contact:	Catherine Bromberg
January 28, 2010		(781) 262-6027
		cbromberg@mhalink.org

Governor Deval Patrick’s proposed 2011 budget assumes another challenging year for the state and calls for program cuts throughout state government, including MassHealth. Hospital reimbursement will again suffer further reductions, namely through the elimination of inpatient acute outlier payments, which cover patients with extremely complex and/or expensive treatment needs. 

In addition, the Health Safety Net (HSN) is expected to experience a shortfall of close to $100 million.  Although the governor’s proposed budget re-establishes a general fund contribution of $30 million and calls for the current fiscal year (FY2010)’s Health Safety Net (HSN) account to receive prior year HSN surpluses totaling $30 million to help alleviate an existing $70 million shortfall, the strain on hospital finances will be significant. Contributing factors to the shortfall include the eligibility restrictions of the Commonwealth Care Bridge program and the elimination of restorative dental care for most MassHealth and Commonwealth Care adults.

And while overall Governor Patrick’s proposed FY 2011 budget demonstrates the administration’s continued commitment to healthcare reform, particularly in the current stark economic environment, The inclusion of new revenues – including taxes on candy and sugared drinks which is supported by MHA - appear to mitigate the potential depth of possible cuts, but MHA remains deeply concerned about continued and worsening government underfunding of care to patients.

Massachusetts hospitals are committed to working with the state’s elected and appointed officials to implement meaningful and sustainable payment reform in the Commonwealth, and to mitigate increases in healthcare costs. But true healthcare reform will still require hospitals to be adequately paid for care provided to our most vulnerable residents. Short-changing providers through government reimbursements that are substantially below costs will exacerbate these problems rather than ease them, and could threaten the ability of hospitals to pursue their critical care-giving missions.

The Governor’s commitment to making healthcare payment reform work is clear, but Massachusetts must demonstrate the same sort of “shared responsibility” for payment reform that was shown by providers, employers, insurers and government alike when the Commonwealth tackled coverage reform in 2006. All of these stakeholders must now join together to maintain the success we have achieved thus far, and also take personal – and collective – responsibility for making sure the larger reform effort continues to advance.  MHA and its member hospitals pledge to continue to work with our fellow healthcare leaders throughout the state to achieve an appropriate balance of revenue and cost containment. 

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About MHA: The Massachusetts Hospital Association is a voluntary, not-for-profit organization comprised of hospitals and health systems, related organizations, and other members with a common interest in promoting the health of the people of the Commonwealth. Through leadership in public advocacy, education, and information, MHA represents and advocates for the collective interests of its member hospitals and health systems, and supports their efforts to provide high quality, cost effective, and accessible care.

Statement on Governor Deval Patrick’s Proposed FY2011 Budget (Microsoft Word Document)