FOR IMMEDIATE RELEASE Contact: Nancy Strassel

April 16, 2009 (513) 531-0200

Speaker Budish Makes Strides in Addressing
Southwest Ohio Hospitals’ Budget Concerns

(CINCINNATI, OH) – Southwest Ohio hospital concerns with a proposed new franchise fee to finance Medicaid have been heard by Ohio House Speaker Armond Budish (D-Beachwood) and other Democratic members including Representative Denise Driehaus (D- Price Hill) on the House Health and Human Service Finance Subcommittee.

The speaker has told the Ohio Hospital Association (OHA) his caucus will introduce several measures next week in Substitute House Bill 1 to help address hospitals’ concerns with the proposed new fee as well as a Medicaid managed care contracting issue.

“We appreciate the speaker’s and Democratic House caucus efforts to help hospitals recoup more of the assessment,” said Greater Cincinnati Health Council President Colleen O’Toole. “Southwest Ohio hospitals are willing to do their part by drawing down additional federal resources, but they want their dollar back and need to be kept whole in the process,” O’Toole said.

Southwest Ohio hospitals would still lose money, but Budish’s plan would raise the assessment to increase the amount of federal funds that would be returned to hospitals. Instead of losing an estimated $411 million over the two-year budget that begins July 1, OHA estimates hospital losses would be reduced to $127 million. The Budish proposal means instead of receiving just 31 cents for every $1 in new assessments, hospitals would receive 82 cents.

“Cincinnati Children’s Hospital serves every child regardless of ability to pay. In a time where we are seeing Medicaid caseloads increase to over 45% of our payer mix, it is vital that Medicaid be stable. I am pleased the Speaker tried to find a solution,” said Dee Ellingwood, Children’s Senior Vice President, Planning and Business Development, and Health Council board chair.

“Today the Speaker made great progress to solve a difficult problem that still needs some work,” O’Toole said. “Other members of the House including Denise Driehaus, who sits on the Health and Human Services Finance Subcommittee, learned a lot about our issues in a very short period of time and advocated on our behalf as well,” she noted.

Southwest Ohio hospitals also applaud Budish’s pledge to preserve the fundamental right of two private parties to negotiate a contract by removing language regarding hospital contracts with Medicaid managed care plans. “We are very pleased the Speaker saw the points we were raising on this issue and that it does not make sense for the State to get involved in private contracts,” said O’Toole. Finally, the speaker also pledged to add language to the budget bill bolstering a promised 5% increase in state Medicaid reimbursement rates. Two years ago a rate increase was promised by the administration but subsequently not delivered due to budget constraints.

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