Are working for the impact from the hospital Medicade cut President Trump’s comprehensive expenditure and tax deduction law.
Although most of the cuts will not be immediately, especially rural facilities say they have to make difficult financial decisions as to which services they can spend and which may require cutting.
Hospitals vigorously raised alarm about the law, but their warnings are unheard, and now they say they would take up the brunt of changes.
The new law cuts about 1 trillion dollars from the Medicade, mainly with stringent work requirements -how can the state provider to fund your medicated programs through taxes and state guided payments.
Rural hospitals rely very much on Medicade funding as many of the patients they take care of are low -income.
“State -directed payments and ban on provisional taxes cuts important financial lifestyle for hospitals,” Chairman and CEO of the US essential hospitals said in a statement.
“State directed payments are an important source of support for hospitals, especially in rural areas, and provide taxes to reduce the difference between taxicids and other payments, ensuring that physicians can carry medicid patients and hospitals can be staffed adequately. Cutting these life lines is not permanent, and it will harm patients.”
According to research conducted by the University of North Carolina’s Shapes Center for Health Services Research, more than 300 rural hospitals in the US are in danger of being closed due to the bill. Released last month By Democratic MPs.
Rural hospitals already work on thin margin. According to the report, patients with more unlicensed patients will be given rise from the law of law, which means that rural hospitals will not be paid for services they are required for essential services by law. In turn, they will withstand deep financial stress.
Medicade-dependent services-like labor and distribution units, mental health care, and emergency rooms-some are least profitable, yet the most essential services that provide hospitals. But experts said that those people would be cut as an attempt will be made to stay in the hospital.
According to the Health Research Group KFF, in rural communities, medicid covers about half of all births and one-fifth in-appearance discharge.
Republican pushed back the beginning date for provider tax deduction by 2028, and would not be fully phased out by 2031. The bill was signed in the law only on 4 July, so hospitals said that it is very early for them to know which services they would have to cut.
But discussion is going on as hospitals need to start the scheme.
Edwin Park, a research professor at the McCourt School of Public Policy at Georgetown University, said, “If they see a very negative outlook in terms of medicine reduction, then there is an increase in the cost of care without care, I think it would not extend, not, hiring, no, no, hiring, not to cut services, cutting of services, do not hiring,”
Mark Nantz, president and chief executive officer of Valley Health System, oversee a network, including six hospitals in Virginia and Shenandoh Valley in West Virginia, ranging from a 495-bed regional facility in Washingter to about 70 miles outside Washington.
Nantz said that Medicade expansion and provider taxes have also allowed the system to break while taking care of the Medicade patients. Previously, they were losing about 25 cents on every dollar.
Once the cut is fully phased, Nantz said that Valley will cause about $ 50 million per year in revenue for health medicid patients. Most likely, casualties will be new construction and expansion plans, but he said that it is too early to know.
“We are not in a situation where we need to kneel because we are a very stable healthcare system, but it is definitely the way we are expanding and are going to change the types of services that we provide in our six hospitals,” Nantz said.
Valley Health was capable of expanding services he provides because it was not losing money on the Medicade, but it may not be able to continue. While hospitals cannot be closed, certain types of special care can be transferred from rural facilities and centralized in regional facilities.
Nentz said, “We really have got two to three years to make those types of decisions and what we will prepare. So we are not threatening to cut jobs or hospitals or service places or any of them,” but we have to see if we can offer the same type of services.
Concerned about the impact of reduction in provider tax on rural hospitals, Republicans put a $ 50 billion relief fund in the law. The law asks for the money to be distributed by the center of Medicare and Medicade Services (CMS) in five years.
The federal government will distribute half of the $ 50 billion allocation of the program equally to all states with an approved application over the next five years.
But experts said that money is almost not enough for the impact of the cut. According to an KFF analysis, federal medicade expenses in rural areas are estimated to fall by $ 155 billion in a decade.
The park said that the states and hospitals where the most difficult will be hit will be at least profit.
He said that the law gives a lot of discretion to the Trump administration on how they divide the money, so there is a possibility of bias.
Each state addresses the objectives of the program by the end of the latest 2025 to apply for funds by submitting “Detailed Rural Health Change Scheme”, which is according to the law.
But if the CMS administrator Ghumet Oz does not agree how the states are using their funds, the law says that he can “stop payment, or reduce payment, or recover previous payments from the state.”
“This is a fig leaf,” the park said. “Fund is temporary. These cuts are permanent.”
