• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • The Fraudulent Hospital “Deal”

    The trumpets are blaring to announce with great fanfare another “historic” political deal designed to give a boost to the sagging fortunes of health care reform and convince the public real progress is being made. Hospitals are linking arms with the Obama Administration and Congressional leaders to announce “savings” of $150-155 billion over the next ten years.

    This is a shellgame that should fool no one. According to the Centers for Medicare and Medicaid Services, hospital expenditures between 2009 and 2018 will total $10.5 trillion. So the “savings” represent about 1.5 percent of total income to the hospitals. More than half of hospital income already is generated by government payments. To put $155 billion further into perspective, this is less than the projected $175 billion Disproportionate Share Hospital Payments (DSH) under Medicaid, which are made to hospitals around the country to offset low Medicaid reimbursement rates and care for indigent populations. Medicare DSH payments are worth about another $100 billion over ten years. If everyone is insured, why are DSH payments needed at all? So at a minimum, the hospitals should be “willing” to give up about $275 billion in what will become unnecessary government payments.

    Moreover, if everyone is insured, at least some of these individuals will receive care from hospitals, will they not? Currently, about 31 percent of total health care expenditures go to hospitals. If “reform” increases federal spending by $1 trillion and the hospitals get this same 31 percent of the spending, their share will be $310 billion. The hospitals’ “loss” will not only be offset, they will make another $155 billion.

    What did Lincoln say? “You can fool some of the people ….”.

    Posted in Obamacare [slideshow_deploy]

    5 Responses to The Fraudulent Hospital “Deal”

    1. Pingback: The Fraudulent Hospital “Deal” « Conservative Thoughts and Profundity

    2. Bob, Dayton Ohio says:

      I am interested in knowing what the judge thinks about a national comprehensive healthcare system that will cover anyone in any situation. For example, I belong to the National Roofer's Union; and, my health care covers me according to the amount of hours I work per week (and usually runs out during the winter while I am unemployed due to weather). However, I have not worked, due to the economy, for nearly two years now and have no insurance coverage at all. Where does she stand on someone like me having mandatory free coverage while in a circumstance like mine? Moreover, does she feel such a mandatory coverage should cover any health care problems I would encounter while unemployed and my healthcare covereage expired?

    3. Deb, Richmond, VA says:

      My first reaction upon reading the 'deal' was exactly the same as this analysis. By reducing reimbursements for uncompensated care, the hospitals 'give up' a subsidy they should no longer need if there are few uninsured remaining. Looks like a shell game to me.

    4. Pingback: Fix Health Care Policy | Tomorrow’s Health Care Headlines Today

    5. Pingback: Fix Health Care Policy | Congressional Physicians Warn Health Community of Coming Government Intervention

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×