The Health of Local Health Care: Will local health care survive the 'perfect storm'?
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Economic, demographic and political factors are converging to batter local, state, and national health care. A severe state budget crunch, lower than average Medicare payment levels, and the possibility of an extended economic recession lead to increasing concerns about the unraveling of the safety net for the poor, looming physician shortages, and decreasing access to care. Health care is indeed "caught in the trough." What can be done to avoid the looming "shipwreck?"
The lack of a magic pill to cure Washington State's severe budget problems does not bode well for health care. The two largest line items on the state budget for general funds are education and health care. With the recent passing of two initiatives that enhance spending for education but do not provide a revenue source for those expenditures, and state constitutional protection of basic education dollars, the state will look to reductions in payments to health care programs as a way to reduce state expenses. Narrowing of the eligibility for Medicaid and reductions in the amounts paid to physicians may be two choices. Both will have a negative effect on the availability of health care.
The budget deficit on the national level has been consistently pushing down payments to Medicare health care providers. In the last two years local physicians have seen almost a 10 percent reduction in how much they are paid for providing care to Medicare patients. Washington State providers are among the lowest paid in the nation, making for difficult physician recruitment and retention.
The weak local and national economy is also taking its toll. Insurance companies, which invest cash reserves, will not have interest earnings to help them stay in the black. Higher premiums will ensue and many employers, not able to absorb the increase, may drop employee health benefits altogether, or shift the increases to employees in the form of higher premium contributions and copayments. These factors, in addition to high unemployment, will increase the numbers who are uninsured and unable to pay for health care.
Cascade Valley Hospital has always been committed to providing care, regardless of an individual's ability to pay. Unfortunately, providing care without being reimbursed or receiving reimbursement that is less than the cost of the care will necessitate some tough decisions by all area hospitals. There may not be the ability to purchase the newest advances in equipment. There may be less staff to provide care which will mean longer lines in waiting rooms. We may even have to eliminate some services.
The challenges facing local health care are complex and distressing. A potential crisis looms in almost every direction. Without intervention the "perfect storm" will hit. Cascade Valley Hospital and Clinics, the Washington State Hospital Association, and others are working to avert the potential crisis, and you too can help.
- Call or write your elected officials.
- Volunteer are your local hospital.
- Educate yourself about the health care you and your family receive, and the cost of that care.
- Take care of your own health.
- Keep your health care dollars in your community by seeing local health care providers.
Disclaimer: This information is provided for educational purposes only. It should not replace a visit with your health care professional. Call your doctor if you need more information or have additional questions.