17 Jan Fierce Healthcare: ‘Safety-net’ hospitals face federal budget cuts
“A double whammy of federal budget cuts might force many hospitals, particularly those that serve poor or rural communities, to scale back services or even shut their doors.
The $3.6 billion in cuts this year—$2 billion from a program that sends federal dollars to hospitals that serve a high percentage of Medicaid or uninsured patients, and $1.6 billion from a drug discount program—will have the greatest effect on so-called safety-net hospitals that provide medical care for all comers, no matter their ability to pay.
The cuts are in addition to other losses of federal funds as a result of Congress’ failure to reauthorize spending in 2018 on other programs affecting many hospitals, including $1.5 billion to support community hospitals, a combined $370 million for the National Health Service Corps and Teaching Health Centers, both of which support rural hospitals, and $3 billion for the “Medicare extenders” program, which provides additional funding for isolated, low-volume hospitals and other rural hospitals.”
