Voices in Healthcare

As we grapple with the prospect of national default over the question of expanding the US debt ceiling, Massachusetts Taxpayers Foundation President Michael Widmer's op-ed in this weekend's Boston Globe offers a clear message about additional dangers closer to home. Specifically he calls on state lawmakers not to rush into additional regulations and cutbacks for the healthcare community as part of the ongoing effort to curb costs.

As Mike very eloquently points out, "leaders must be careful to recognize that a combination of market pressures and their own recent legislative accomplishments have begun to bear fruit." He is absolutely right. Massachusetts hospitals have reduced their anticipated healthcare cost increases by $3.1 billion during 2009 and 2010 in response to both market forces and existing state laws. Yet despite these efforts, our hospitals continue to be challenged by ongoing government underpayment for care provided through Medicare and Medicaid, and by increased administrative burdens the state Medicaid program now places on healthcare providers.

Continued progress in healthcare payment and delivery reform is highly dependent on hospitals' ability to invest in resources like workforce and health information technology. With one in six Massachusetts residents employed in healthcare, and a combination of current cost-saving measures and continued government underpayment already resulting in layoffs at hospitals across the Commonwealth, now is not the time to be piling on additional restrictions.

Cautioning the state shouldn't be confused with defending the status quo. The status quo is fading fast. That is good news and paves the way for new opportunities. Change is happening fast. And government has helped stimulate that change, but it shouldn't now overreach. While government has a legitimate interest in both the delivery and cost of care, there are limits to what government can do without stifling the ability of the private market to innovate and adapt to change quickly and efficiently. It's both gratifying and reassuring that someone from outside the healthcare community is so perceptive about the potentially devastating impact of heavy-handed rate regulation and funding cuts on our hospitals and healthcare systems.  The Patrick administration, legislators and other healthcare stakeholders should heed Mike Widmer's wise counsel and refrain from harming the healthcare sector, which adds so much to the quality of life in Massachusetts by providing great healthcare and rewarding jobs today while collaborating to grow a vibrant economy tomorrow.