fah hospital policy blog

Perspectives on health policy affecting America’s hospitals and the patients we serve.

Federal Funding Cuts To Hospitals Escalate To $142.6 Billion

May 18, 2015 | FAH Hospital Policy Blog Team

Category: Health Care Delivery, Legislation, Medicare, Sequester

Hospitals are the cornerstones of the communities we serve.  Together with our physician partners and other caregivers, we provide life-saving, high quality care 24/7/365.  Hospitals need stable revenue streams to continue providing these services, including federal Medicare payments to fund care for the elderly and disabled. 

Unfortunately, policymakers are continuing to use Medicare hospital payments as a piggybank to fund other health and non-health-related programs which threatens our ability to provide the care our communities need. With the recent enactment of the physician payment fix, hospitals are facing an additional $20 billion in cuts. 

In fact, since 2010, hospitals now have been cut more than $142 billion over the next ten years.  And MedPAC continues to project that in 2015, overall hospital Medicare margins will drop to -9%, the lowest Medicare margin in history. The fiscal landscape hospitals face today and over the next 10 years is dramatic:

FAH Enough is Enough 2015 V2 - FINAL

Hospitals take our commitment to community care seriously.   We seek to provide the best care with less federal resources. 

America’s hospitals are constantly balancing labor and other input costs, while also facing difficult fiscal decisions every day about whether to stay open or cut services.  

Cuts have consequences.  Enough is enough.