Medicaid changes could cost MU Health Care millions
Published Feb. 15, 2005
University Hospital and Clinics officials said proposed Medicaid cuts could affect the system to the tune of several million dollars.
Mary Jenkins, University Hospital and Clinics spokeswoman, said a 5 percent to 10 percent cut in Medicaid eligibility would result in losses between $4.5 million and $9 million to the hospital system.
"Any cuts in Medicaid eligibility that would increase the number of uninsured patients are a concern for us as a safety net provider," Jenkins said. "If people lose their health insurance, they are more likely to postpone care until it is more expensive to treat or until their health is compromised."
Dave Dillon, vice president of media relations for the Missouri Hospitals Association, said the proposed cuts in Medicaid spending could affect hospitals statewide.
"For hospitals in general, the cuts would make a significant difference," Dillon said. "That proportion would be greater for the MU Health Care system than most others because it provides a lot of indigent care."
Rep. Judy Baker, D-Columbia, said the impact would be felt disproportionately by the UM system.
"The MU Health Care system has a higher than average percentage of Medicaid patients," Baker said.
Dillon said if Medicaid spending is cut, the people who come in would lose their coverage, but they would still need health care.
"Budgets don't stop people from getting sick," Dillon said. "Hospitals are required to not turn anyone away. That turns into charity care, and we pick up the tab."
Federal law requires patients be seen and stabilized regardless of their ability to pay.
Jenkins said people without insurance eventually seek treatment that would be more expensive than if they had insurance.
"They are more likely to seek care that is more expensive to treat if they're not covered by insurance and not going to see their physician," Jenkins said.
Dillon said the costs of hospitals would be passed along to those who have more traditional health care coverage.
"Providing charity care is a part of our mission," Dillon said. "But on the other hand, you can't operate at a deficit forever."
Jenkins said though cuts in Medicaid concern University Hospital and Clinics officials, they are committed to controlling the costs of the program.
"University of Missouri Health Care wants to be a solution-driven partner in the state's effort to control the costs of the Medicaid program," Jenkins said.
Baker said there are an estimated 89,000 to 122,000 Missourians who might become uninsured under Gov. Matt Blunt's proposed changes.
Medicaid payments to the MU hospital system totaled $90.6 million in fiscal year 2004. That number constituted 18.5 percent of the system's operating revenue. That year, University Hospital and Clinics had 4,579 Medicaid hospital inpatient admissions and about 81,000 Medicaid outpatient visits.