This was issued by the analysts of Moody’s and it really doesn’t take a rocket scientist to figure this one out either. Where will the funds come from if the federal government cuts the DSH payments? As I read today, I don’t see any state looking at budgets that are not already stretched to the limits, unless I have missed something. If the states do not come in and help support the DSH effort with cuts from the feds, then this leaves the hospitals on their own to fill the dollar gaps and many hospitals are walking a fine financial line already. I think now is not a time to let political battles take precedence as a lot of citizens will be hurt and not have access to medical care as push will come to shove. BD
Analysts with Moody's Investors Service warned that U.S. hospitals will be hurt unless states choose to expand Medicaid under President Obama's healthcare law.
A report from the credit rating agency predicted state governments will come under pressure from hospitals as the federal government cuts their disproportionate-share (DSH) payments, which are disbursed to help hospitals cover the cost of charity care for the uninsured.
The law mandates a decline in DSH payments under the assumption that most uninsured people with gain coverage through the individual mandate or the Medicaid expansion.