Myths and Facts about Hospitals and Healthcare Reform

By John Ballard

Maggie Mahar is on a roll.
In Part 4 of a long series she lists myths and facts about how the Patient Affordability Act will impact hospitals.

...today, more efficient hospitals make money or at least break even on Medicare beneficiaries. The Medicare �cuts� will not affect needed care; they aim only at reducing waste, infections and inefficiencies that hurt patients.

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Here, in Part 4, I respond to rumors that because government pays less than private insurers, hospitals will continue to shift costs to insurers, and thus, insurance premiums will rise. The truth is that private insurers are over-paying some hospitals, not because Medicare pays too little, but because large brand-name hospitals have more clout in the marketplace than insurers, and can force them to accept high charges. As reform regulations put insurers under financial pressure, it�s likely that they will begin to fight back. Meanwhile, states will follow Massachusetts in taking a closer look at �marquee hospitals� that charge more for basic services, without providing better care.

Other critics of reform worry that millions of formerly uninsured patients will flood hospitals, and we�ll all wind up waiting on line. The fact is that community clinics now care for many of the uninsured, and the legislation provides $11 billion in new funding for these clinics, enough money to let them continue to care for those patients, while treating 20 million additional patients, or almost two-thirds of the newly-insured.

Many of the uninsured who don�t have nearby neighborhood clinics now get most of their care in hospital emergency rooms; under reform they will find medical homes in new clinics. I also explain how the legislation provides incentives for primary care doctors and nurse practitioners to staff clinics. Many little-known provisions in the reform bill address the nation�s nursing shortage.

Some of reform�s most vociferous opponents object to the fact that the legislation prohibits construction of new doctor-owned specialty centers while restricting growth of existing facilities.�Lawyers can invest in hospitals,� they say, �why shouldn�t physicians �who know far more about medicine�take a financial interest in hospitals?� The post below spotlights peer-reviewed medical research that reveals how physician-owned medical centers cherry-pick patients and help drive health care inflation heavenward, while undermining the community hospitals that provide the less profitable services that we all need.

Long post at the link with many supporting details as only Maggie Mahar can furnish. In my case she's preaching to the choir but skeptics should read what she says with thoughtful, open minds.