Hospital and Healthsystem Association of Pennsylvania says federal payment cuts could threaten Pennsylvania hospitals

The Hospital and Healthsystem Association of Pennsylvania (HAP) warned in a recent press release that projected federal payments cuts could pose a threat to the long-term financial viability of hospitals in Pennsylvania.

The press release followed the release of a new report that estimates that payment cuts enacted by the U.S. Congress and the Centers for Medicare & Medicaid Services (CMS) will result in more than $252.6 billion in reductions to hospitals nationwide between 2010 and 2029.

Dobson DaVanzo & Associates, LLC, a health economics and policy firm based in the Washington, D.C. area, conducted the report, titled Federal Payment Reductions to Hospitals Following the ACA. The Federation of American Hospitals and the American Hospital Association commissioned the report. It quantifies the impact of 12 legislative acts and regulatory changes enacted by CMS.

“These cuts are above and beyond the payment reductions enacted under the Affordable Care Act, and could severely affect access to care across the U.S.,” HAP said in the press release. “This is particularly concerning to parts of the country with a fast-growing elderly population… Given these demographic shifts, the magnitude of Dobson DaVanzo’s projected federal payment cuts pose a significant threat to the long-term financial viability of hospitals in the Commonwealth.”