GNYHA Member CEO Testifies on Behalf of Teaching Hospitals
On May 16, the U.S. House Ways and Means Health Subcommittee held a hearing on Medicare fee-for-service providers. The purpose of the hearing was to take a "thoughtful look" at the payment systems for hospitals, nursing homes, home health, and long term care hospitals and inpatient rehabilitation facility providers. The hearing underscored the reality that lawmakers are looking at all providers as they attempt to identify potential areas of savings in order to realize several expensive legislative priorities this year, including the reauthorization and expansion of the State Children's Health Insurance Program  and a physician payment adjustment. 

GNYHA Board member Stanley Brezenoff, CEO of Continuum Health Partners, Inc., testified on behalf of GNYHA and the Association of American Medical Colleges (AAMC). Mr. Brezenoff warned against the looming physician shortage and the shortsightedness of the Bush Administration's plans to cut billions of dollars in Medicare and Medicaid funding from the nation's teaching hospitals. Mr. Brezenoff noted that the nation will have a shortage of at least 55,000 physicians by the year 2020. In response to this crisis, the AAMC has called for a 30% increase in U.S. medical school enrollment by 2015, which would result in an additional 5,000 new physicians annually. 

"Given the amount of time it takes to educate and train a physician . . . 2020 is now," said Mr. Brezenoff. "Unfortunately, at a time when the mission of our teaching hospitals to train tomorrow's doctors has never been more important, they face severe funding cuts by the Bush Administration."

The President's budget proposes to cut more than $100 billion from Medicare and Medicaid programs over five years. Of those cuts, two are targeted solely at teaching hospitals: 1) the elimination of Medicare indirect medical education payments associated with treating Medicare managed care (or "Medicare Advantage") beneficiaries; and 2) the complete elimination, through regulatory action, of Medicaid funding for graduate medical education.  

Mr. Brezenoff also testified that, in light of the physician shortage the U.S. faces, the AAMC and GNYHA strongly urge Congress to lift the cap on the number of residents for which teaching hospitals may receive Medicare reimbursement.

Other witnesses at the hearing included American Hospital Association President Rich Umdenstock, American Federation of Hospitals President Chip Kahn, and American Health Care Association President Bruce Yarwood. Mary Beth Walsh, CEO of the Burke Rehabilitation Hospital (a GNYHA member) testified on behalf of the American Medical Rehabilitation Providers. Prior to the provider panel's presentations, Herb Kuhn, Acting Deputy Director of the Centers for Medicare & Medicaid Services, and Mark Miller, Executive Director of the Medicare Payment Advisory Commission, also testified.