Healthcare future funds in gov’s hands

Dear Editor:

At the end of the day, the results of funding for healthcare in Louisiana will be determined by the Administration’s choice either to fully fund the Medicaid program, which includes restoring proposed cuts, or to support cutting healthcare.

The adverse decision to not support healthcare funding could lead to over $50 million in cuts to hospitals in the state’s Medicaid program.

Partial restoration to these funds is still a cut, and because of inflation, a standstill budget would have the same negative effect to healthcare as being cut.

The message of the Louisiana Hospital Association has been consistent: make improvements to healthcare while the state is in a good financial position rather than cut funding to programs and services that are necessary to the health and well being of our communities.

The prudent approach for the state would be to focus on long-term structural changes to provider reimbursement and to expand coverage, but these ideas have gained little traction.

Making cuts to healthcare and continuing to under-fund government programs, such as Medicaid, causes a rapid increase in healthcare costs for employers and employees. Those who are lucky enough to have health insurance will feel these cuts in their pocketbooks, because those who pay for health insurance end up paying for those who don’t have it through higher premiums.

Likewise, those same people also pay more to make up the funding difference of government programs, like Medicaid, that pay well below what it costs to provide care.

While Louisiana is trying to put its best foot forward to attract business, a move such as cutting healthcare is an anti-business strategy and will drive up the cost of doing business in the state! Let us not forget the importance of hospitals as “businesses” in the state with an approximate 101,900 direct hospital jobs provided for our citizens with an annual payroll of $3.6 billion.

The proposed cuts will affect all corners of the state in delivering healthcare. Cuts are estimated to be: $2.8 million in the Alexandria area; $1.6 million in the Houma-Thibodaux area; $8.6 million in the Baton Rouge area; $5.4 million in the Acadiana area; $1.9 million in the Lake Charles area; $2 million in the Monroe area; $16.5 million in the New Orleans area; $3.6 million in the Northshore area; and $4.1 million in the Shreveport area.

We call on the Administration and the Louisiana Legislature to take a more open and active role to support fully funding healthcare and to open a dialogue with hospitals. Further, the Louisiana Hospital Association challenges both the Administration and the Legislature to recognize the importance of funding services for our most vulnerable population – our sick, our elderly and our poor – and to restore the cuts made to the Medicaid program.

John A. Matessino, president/CEO, Louisiana Hospital Association