Kearney-area hospital leaders say Medicaid cuts would have 'dramatically negative impact'

Leaders at Kearney-area hospitals have deep concerns over possible cuts to Medicaid. The U.S. Senate approved proposed cuts to the program Tuesday as part of the federal budget bill.

"CHI Health Good Samaritan is extremely concerned about the possibility that millions of patients could lose Medicaid coverage," said Curt Coleman, president of CHI Health Good Samaritan.

"While it's too soon to know what the final bill's impact would be on our hospital, we are working closely with our congressional delegation to protect Medicaid," he said.

Doug Koch, CEO and president at Kearney Regional Medical Center, said "the proposed cuts are very concerning."

He explained, "We already know that the reimbursement that hospitals receive on every Medicaid patient do not cover the cost of that care. As Congress proposes further significant reductions in the program, specifically the State-Directed Payment program, the hospitals will be left to bear the uncompensated costs. This will have a dramatically negative impact on every hospital in Nebraska."

The SDP is a financing mechanism that allows states to direct managed care organizations to make specific payments to providers.

Jason Douglas, CEO at Lexington Regional Health Center, said Wednesday that the bill, as it currently stands, would be "pretty devastating." It would cut several million dollars from the hospital's $45 million annual budget.

"We serve a significant number of Medicaid patients throughout the region, and this would have a significant impact," he said. "We're already struggling to make our budget every year." LRHC has 25 beds, along with a primary care clinic.

The Nebraska Hospital Association has encouraged the community to contact federal legislators to oppose the bill. It has prepared a statement on its website (nebraskahospitals.org) that the public can email to elected officials.

"Our rural hospitals are already at a breaking point," said Jeremy Nordquist, NHA president. He noted that 44 percent of Nebraska's rural hospitals now operate at a loss.

Nearly half of all Nebraskans enrolled in Medicaid live in rural counties. These cuts pose "very severe threats to Nebraska patients and hospitals, particularly in rural communities," according to the NHA.

Nordquist said that 68 percent of hospitals in Nebraska are rural hospitals. Medicaid pays for 26 percent of all emergency room visits, 33 percent of all births, 43 percent of all behavioral health services and 44 percent of all services provided to minor patients.

In the past two years, 20 percent of Nebraska hospitals have eliminated services including labor and delivery units, behavioral health services, home health services, hospice care, EMS services and nursing homes, Nordquist added.

"This doesn't just hurt Medicaid patients. It impacts all Nebraskans, creating health care deserts and forcing people to travel greater and greater distances or go without care at all," he said.

"Large Medicaid reductions don't just cut costs. They cut care. They eliminate hospital beds, close maternity wards, shutter essential services and sever the lifeline sustaining rural health care. Once these services are gone, they are gone for good," Nordquist said.

"Deep cuts to Medicaid are a significant threat to Nebraska patients, Nebraska hospitals and rural communities across our state," he added.

Lisa Guthrie, executive director at the HelpCare Clinic, said that if Medicaid cuts are enacted, "We anticipate a rise in patient admissions, but we are confident in our capacity to manage this heightened demand."

Located in Kearney, the HelpCare Clinic provides free health care for residents of Buffalo, Kearney and Phelps counties who have no health insurance, including Medicaid or Medicare. The clinic is funded by grants and donations. It receives no federal funds.

"While many of these patients may lose Medicaid and potentially lack medical insurance, our commitment to providing necessary care remains unwavering," Guthrie said.

"HelpCare Clinic will require an exceptional level of donations and volunteers to meet this increased demand, but we will meet the challenge with dedication and caring as we always do," she said.