Proposed bills would ease hospitals' Medicaid burden

By Ira Zunin

POSTED: 01:30 a.m. HST, Jun 09, 2012

~~<p>According to the American Hospital Association, Hawaii is one of only two states where hospitals operate at a loss year after year. One key reason is the high cost of treatment versus low reimbursement to care for Medicaid patients. Hawaii's hospitals are typically dependent on their associated foundations and philanthropy to offset operating losses. Pressure has continued to mount during the recession with two recent hospital closures in Hawaii.</p>
<p>Under the Affordable Care Act, the state is entitled to $10 million in federal Medicaid Disproportionate Share Hospital funds. However, to secure those dollars, states must provide matching funds. Insufficient general funds in the state coffers have made it problematic to match the available federal dollars.</p>
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According to the American Hospital Association, Hawaii is one of only two states where hospitals operate at a loss year after year. One key reason is the high cost of treatment versus low reimbursement to care for Medicaid patients. Hawaii's hospitals are typically dependent on their associated foundations and philanthropy to offset operating losses. Pressure has continued to mount during the recession with two recent hospital closures in Hawaii.

Under the Affordable Care Act, the state is entitled to $10 million in federal Medicaid Disproportionate Share Hospital funds. However, to secure those dollars, states must provide matching funds. Insufficient general funds in the state coffers have made it problematic to match the available federal dollars. Login for more...