fah hospital policy blog

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

New Report Shows Cumulative Hospital Cuts Top $252 Billion

October 15, 2019 | FAH Policy Blog Team

Category: Statement

The cumulative reductions in federal payments to hospitals since 2010 will reach $252.6 billion by 2029, according to a report released today by the health economics consulting firm Dobson | DaVanzo and Associates.

The study, which was commissioned by the Federation of American Hospitals (FAH) and the American Hospital Association (AHA), examined how 11 pieces of legislation combined with numerous regulatory changes would affect hospital funding from 2010 through 2029.

The leaders of FAH and AHA reacted to the results.

“Hospitals are nearing the tipping point we have predicted for so long. The disruptions that come with Medicare and Medicaid cuts of this magnitude have a real-world impact on our ability to deliver the vital services to the patients and the local communities that depend on us. As these cuts pile up, we urge policymakers to understand there comes a point where enough is enough. For the sake of our patients we need to stop this troubling trend,” said Chip Kahn, FAH President and CEO.

AHA President and CEO Rick Pollack added, “Hospitals and health systems are doing more to meet the needs of patients and communities than ever before. They not only work to ensure the highest quality care in delivering essential public services, but also address the social determinants of health, community violence, and ensure they are always there and ready to care in the case of any emergency. The pile-up of reductions in funding for patient services outlined in this report is already creating very serious challenges to ensure access to care. Enough is enough.”

A complete copy of the Dobson | DaVanzo study can be found on fah.org and aha.org. To view the Enough Is Enough infographic click here.