Athens Regional Looks To Cut Millions

One of the bigger hospitals in the state needs to cut millions of dollars from its budget in order to stay afloat. The financial struggles of Athens Regional Medical Center are much like other health care facilities across Georgia trying to hang-on.

Officials with Athens Regional are considering all options in trying to reduce costs, but yet spur new revenue. The Athens Banner-Herald says the hospital needs to cut $14-million from its budget, and layoffs may have to be part of the plan. The hospital employs 2,500 people full-time, with another 500 part-time.

The weak economy has affected hospitals and health care centers everywhere in Georgia, whether in large urban, or small rural areas.

Kevin Bloye is with the Georgia Hospital Association, which represents 170 hospitals and health care systems:

"We did a survey among our membership the first part of the year and we found three out of four hospitals in the state are experiencing pretty severe increases in bad debt and charity care since October of '08."

A spike in un-insured patients, and dramatic fall in money-generators like elective procedures are part of the equation.

Bloye says federal stimulus dollars in the state budget propping-up Medicaid is helping.

Governor offers new plan to charge hospital fees

Rural hospitals worry about a new plan by Governor Sonny Perdue. He wants to cut-down the state’s Medicaid and Peachcare deficit with a new hospital fee. But that proposal could push some rural hospitals over the brink financially.

Within Georgia’s budget deficit of around two-billion dollars is a significant shortfall in funding for Medicaid and Peachcare--insurance for children of the working poor. Bert Brantley with the Governor’s office says it’s a crisis that needs a solution sooner than later:

"If we don’t do something, there will be significant cuts in reimbursement rates to hospitals...in the amount of people that can receive coverage from Medicaid and Peachcare--really some very difficult things that are going to cost us in the long run."

Earlier this year, a plan was put on the table that would charge health insurance companies extra fees. That offering drew strong push-back from insurers. Now, this new proposal would charge every hospital a flat fee based on a percentage of net revenues.

The money would be pooled to draw down more federal money for healthcare. Brantley says it’s something Georgia’s bigger hospitals that specialize in trauma care are clamoring for:

"They want help in the trauma area...they want increased rates for Medicaid. When they cover a Medicaid patient, they don’t get 100-percent for the cost they incur."

But Brantley acknowledges this plan could be a problem for smaller town and rural hospitals across Georgia that don’t offer trauma care and other services covered by federal money. 55 such hospitals in the state are represented by HomeTown Health--the organization’s president and CEO is Jimmy Lewis:

"In rural Georgia especially so many of the hospitals are already cash-starved where we have many who have less than 10 days cash on hand. For them to have to accept a tax on top of what they’re currently doing, especially a tax on current net revenues, would be a catastrophic blow to them."

Lewis says unemployment in rural areas leads to more people who can’t pay for services at those hospitals-making it even harder for hospital cash flow. He says perhaps up to 10 hospitals would be on the brink financially under the proposed fee.

The Governor’s office says the plan is being put forth now to spark full discussion, ahead of the General Assembly session next month.

Georgia gets near-failing grades in new emergency care report

A national report released today gives Georgia’s emergency medical care near-failing grades.

The American College of Emergency Physicians second National Report Card says Georgia’s got some serious medical homework to do: Georgia ranks 31st on the list, says ACEP President Dr. Nick Jouriles:

“The emergency care system is a ticking time bomb made worse by the financial crisis, and a failing nation’s healthcare system.”

Statewide, “failing” stands for an “F” in access to emergency care.

The report also gives the state C’s and D’s for too little disaster planning, and too few medical providers serving too many uninsured residents.

Doctor Matthew Watson is an emergency room physician at Atlanta’s Northside Hospital:

“By not having all of the different subtypes of physicians available, this limits our ability to care for the patients in a timely fashion.”

And in a bustling emergency room, that means,

"If patients come into the emergency department that we can’t provide the care for, then that’s going to slow down the next patient that needs to be seen, which is ‘domino effect,’ it’s just going to slow down the providing of care to all of the patients.

The report says more than 80 percent of the state’s residents live within an hour of a Level I or II trauma center.

Watson says, however, that part of the problem is getting doctors and other medical providers to work with limited equipment in many parts of the state:

“In rural areas, you simply don’t have the facilities that could support open-heart surgery, or any of the other specialties at a smaller rural hospital.”

The report has some bright spots: Georgia ranks first in the nation for patient access to substance abuse treatment services.

As well, liability reform laws also get high marks for limiting frivolous lawsuits and lowering medical liability insurance premiums.

The report, partly funded by The Blue Cross Blue Shield of Georgia Foundation, recommends training more emergency doctors and residents, critical medical specialists, registered nurses, and primary care providers.

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