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Healthcare Financial Management Association. New York Hospitals and the 2010 State and Federal Landscape March 18, 2010 LaGuardia Marriott. Agenda. New York Hospitals. New York Hospital and Insurer Margins. * Does not reflect $500 million in 2009 Medicaid cuts or proposed 2010 cuts.
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Healthcare Financial Management Association New York Hospitals and the 2010 State and Federal Landscape March 18, 2010 LaGuardia Marriott
New York Hospital and Insurer Margins *Does not reflect $500 million in 2009 Medicaid cuts or proposed 2010 cuts Over the last 8 years, NY hospitals have incurred losses of $466 million while NY insurer profits exceeded $10.3 Billion
New York Hospitals Disproportionately Reliant on Medicaid and Medicare New York State New York City 64% Medicaid/Medicare 69% Medicaid/Medicare (National number is 56%) Greater New York Hospital Association
Medicaid cuts are huge but pressure is coming from all over Relatively flat Medicare payments Increasing bad debt due to recession, increased patient cost sharing Increased audit recoveries Payment reductions for Never events Readmissions Observation level
Hospitals turn to private payers to subsidize government program losses
Proposed 2010 Medicaid Cuts($ in Millions) Almost $1 Billion Note: Providers losses account for the typical cash-flow lag in State savings, the loss of Medicaid Federal matching funds, and, for hospitals, the impact on Medicaid managed care, Workers’ Compensation, and No Fault rates.
Enrollment Growth Accounts for Almost All of New York’s Medicaid Spending Growth Greater New York Hospital Association
New York Medicaid Enrollment Has Grown Sharply Medicaid enrollment has grown 60% And Government Has Paid for Part of this Growth Through Provider cuts! Greater New York Hospital Association
Results of Coverage Expansion Uninsured in Millions Insured % of U.S. Residents (including unauthorized immigrants) Source: Congressional Budget Office.
Hospital Cuts 2010-2019, $ in Billions Source: Congressional Budget Office.