fah hospital policy blog

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

FAH Statement on 2016 Budget Resolution

April 29, 2015 | Chip Kahn

Category: Legislation, Medicare

House and Senate Budget negotiators have missed the mark in the fiscal year 2016 Congressional Budget compromise by assuming cuts in Medicare and Medicaid amounting to $430 billion in Medicare alone. These cuts would come on top of huge reductions in health care spending that the Congress has already made, and could threaten access to care for seniors and America’s most vulnerable.

This budget compromise is being announced within weeks of hospitals absorbing an additional $20 billion in cuts included in the SGR package, raising to $140 billion the sum total of cuts suffered by hospitals since 2010.  To top this off, an additional approximately $350 million in hospital cuts is currently embedded in Medicare sequester cuts used to fund the TAA legislation moving through the House and Senate right now.

At the same time, after 12 consecutive years of negative Medicare margins, hospitals face a projected record-low margin of negative 9% in 2015.  Simply put: Enough is enough!

As action proceeds on this Congressional budget, FAH encourages policymakers to eliminate further hospital cuts.  FAH urges Congress to strengthen, not weaken hospital capacity to serve our patients in communities across America.