NAPH Urges Hospitals to Oppose DSH and GME Cuts Proposed by Fiscal Commission - November 16, 2010

The co-chairs of the National Commission on Fiscal Responsibility and Reform, Erskine Bowles and Alan Simpson on Nov. 10 released a draft proposal for how to balance the federal government’s budget in the long run. While NAPH supports efforts to address our nation’s long-term budget issues, the proposal includes several items that would significantly harm NAPH member hospitals. In particular, NAPH is deeply concerned by proposals to:

• “Accelerate Phase-in of Disproportionate Share Hospital (DSH) payment Cuts…in PPACA.” The size of the proposed cuts to DSH are not clear, because it was grouped with other proposed cuts;
• “Cut Federal Spending on Graduate and Indirect Medical Education (GME).” The proposed GME cuts would amount to $54 billion across the next ten years.

NAPH immediately issued a press release opposing the proposed DSH and GME cuts and is urging safety net hospitals to contact representatives immediately to oppose the proposals.

NAPH is actively engaging with members of the Commission, which is scheduled to vote on final recommendations Dec. 1. While it is unlikely that the bipartisan commission will garner the 14 out of 18 votes necessary to issue a formal recommendation, the commission’s final product – in whatever form – may be used to justify budget cuts next year.