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PITTSBURG —
The day will begin with balloons, drinks and midnight kisses.
But 2010 isn’t likely to be a happy new year for many Kansas medical professionals.
As part of the state budget cuts announced by Gov. Mark Parkinson in late November, Medicaid reimbursements will be cut 10 percent on services rendered after Jan. 1. Medicaid provides health care coverage for low-income, disabled and elderly people. As the effective date nears, many local medical professionals are blasting the governor’s decision to reduce reimbursements as much as he did.
“I say this without any reservations,” said Deb Bainbridge, Mt. Carmel Regional Medical Center’s Chief Financial Office, “this is not responsible.”
Bainbridge said Mt. Carmel could lose approximately $930,000 if the 10 percent cut remains over a years span. She said that number represents nearly 30 percent of the hospital’s operating income.
“We will certainly feel it,” she said. “I’m hoping the governor will reconsider this policy.”
In a statement released following Parkinson’s announcement, the Kansas Hospital Association called the decision “bad health care policy.”
“Kansas hospitals understand the extremely difficult situation confronting the state budget,” the KHA stated. “Although those reductions may offer some short-term budget relief for the state, cuts to Medicaid providers are not a viable, long-term solution. These Medicaid cuts will negatively affect access to health care and delivery of health care services in our state.”
The reimbursement reduction is expected to hit long-term care facilities especially hard, as nearly all of their residents receive care through Medicaid. Kevin Knaup, administrator at Sunset Manor in Frontenac, said his facility is set to lose approximately $176,000. He said that while he understands the state is in a financial pickle, the severity of the Medicaid cut took him by surprise.
“Ten percent is pretty major,” he said. “With Medicaid, you were already at a point where you were either just breaking even or even losing money anyway. This is going to affect a lot of people.”
Monty Busby, administrator at Medicalodge in Pittsburg, said the cuts “are not good for the industry.”
“They are taking money away from the frail and the elderly,” he said.
The Southeast Kansas Independent Living Center, which provides resources to those with disabilities, responded to the cuts by closing its doors on Fridays. All SKIL facilities — including those in Pittsburg and Parsons — will be open from 8 a.m. to 6 p.m. Monday through Thursday. Dave Sorrick, director of the Pittsburg facility, said the move was necessary to reduce expenditures enough to help offset the reimbursement reductions.
“The cuts total a significant amount of money for us,” Sorrick said. “This is going to have a pretty significant impact on our company. We’re looking at all expenses and trying to keep things from affecting our customers.”
It’s anticipated that the cuts will also lead to a larger backlog of Medicaid applications. The Kansas Health Policy Authority, which administers Medicaid, announced earlier this month its plan for reducing $1.13 million in administrative costs that were also ordered by Parkinson. Those cuts are in addition to the 10 percent across-the-board Medicaid reimbursement reductions.
The KHPA will save $250,000 by eliminating a call center that was available to Medicaid’s 25,000 providers and by “sharply reducing” service for Medicaid’s 315,000 beneficiaries. The KHPA will also reduce services provided by its new Clearinghouse contractor, which managed customer service calls and also processed 85 percent of the applications for low-income families and children.
In a statement on its Web site, the KHPA warned that the reductions could lead to long delays in application processing.
“We already have a backlog of applications there, and that backlog is likely to get worse,” the Web site states.
Krista Postai, CEO of the Community Health Center of Southeast Kansas, said she worries that the people who will be affected most by the Medicaid cuts — and the application backlog — are the ones who can least afford it.
“In Kansas, Medicaid covers the most vulnerable of our citizens — the elderly, children and pregnant women,” she said. “Those are people who can least endure (the cuts) and they are the ones who are ultimately going to suffer. It’s a shame we’re in this situation.
Postai said many people could lose their Medicaid coverage because of the increased backlog of applications.
“And once they lose their Medicaid card, they often don’t bring their children in to get care, or they are delaying care until the child is sick,” she said. “That makes no sense. There is going to be a much higher price to pay than just 10 percent.”
The day will begin with balloons, drinks and midnight kisses.
But 2010 isn’t likely to be a happy new year for many Kansas medical professionals.
As part of the state budget cuts announced by Gov. Mark Parkinson in late November, Medicaid reimbursements will be cut 10 percent on services rendered after Jan. 1. Medicaid provides health care coverage for low-income, disabled and elderly people. As the effective date nears, many local medical professionals are blasting the governor’s decision to reduce reimbursements as much as he did.
“I say this without any reservations,” said Deb Bainbridge, Mt. Carmel Regional Medical Center’s Chief Financial Office, “this is not responsible.”
Bainbridge said Mt. Carmel could lose approximately $930,000 if the 10 percent cut remains over a years span. She said that number represents nearly 30 percent of the hospital’s operating income.
“We will certainly feel it,” she said. “I’m hoping the governor will reconsider this policy.”
In a statement released following Parkinson’s announcement, the Kansas Hospital Association called the decision “bad health care policy.”
“Kansas hospitals understand the extremely difficult situation confronting the state budget,” the KHA stated. “Although those reductions may offer some short-term budget relief for the state, cuts to Medicaid providers are not a viable, long-term solution. These Medicaid cuts will negatively affect access to health care and delivery of health care services in our state.”
The reimbursement reduction is expected to hit long-term care facilities especially hard, as nearly all of their residents receive care through Medicaid. Kevin Knaup, administrator at Sunset Manor in Frontenac, said his facility is set to lose approximately $176,000. He said that while he understands the state is in a financial pickle, the severity of the Medicaid cut took him by surprise.
“Ten percent is pretty major,” he said. “With Medicaid, you were already at a point where you were either just breaking even or even losing money anyway. This is going to affect a lot of people.”
Monty Busby, administrator at Medicalodge in Pittsburg, said the cuts “are not good for the industry.”
“They are taking money away from the frail and the elderly,” he said.
The Southeast Kansas Independent Living Center, which provides resources to those with disabilities, responded to the cuts by closing its doors on Fridays. All SKIL facilities — including those in Pittsburg and Parsons — will be open from 8 a.m. to 6 p.m. Monday through Thursday. Dave Sorrick, director of the Pittsburg facility, said the move was necessary to reduce expenditures enough to help offset the reimbursement reductions.
“The cuts total a significant amount of money for us,” Sorrick said. “This is going to have a pretty significant impact on our company. We’re looking at all expenses and trying to keep things from affecting our customers.”
It’s anticipated that the cuts will also lead to a larger backlog of Medicaid applications. The Kansas Health Policy Authority, which administers Medicaid, announced earlier this month its plan for reducing $1.13 million in administrative costs that were also ordered by Parkinson. Those cuts are in addition to the 10 percent across-the-board Medicaid reimbursement reductions.
The KHPA will save $250,000 by eliminating a call center that was available to Medicaid’s 25,000 providers and by “sharply reducing” service for Medicaid’s 315,000 beneficiaries. The KHPA will also reduce services provided by its new Clearinghouse contractor, which managed customer service calls and also processed 85 percent of the applications for low-income families and children.
In a statement on its Web site, the KHPA warned that the reductions could lead to long delays in application processing.
“We already have a backlog of applications there, and that backlog is likely to get worse,” the Web site states.
Krista Postai, CEO of the Community Health Center of Southeast Kansas, said she worries that the people who will be affected most by the Medicaid cuts — and the application backlog — are the ones who can least afford it.
“In Kansas, Medicaid covers the most vulnerable of our citizens — the elderly, children and pregnant women,” she said. “Those are people who can least endure (the cuts) and they are the ones who are ultimately going to suffer. It’s a shame we’re in this situation.
Postai said many people could lose their Medicaid coverage because of the increased backlog of applications.
“And once they lose their Medicaid card, they often don’t bring their children in to get care, or they are delaying care until the child is sick,” she said. “That makes no sense. There is going to be a much higher price to pay than just 10 percent.”
