SCHEDULE — Ellis Medicine will receive an additional $30.6 million annually in Medicare reimbursement under proposed federal rule changes, Senate Majority Leader Charles Schumer (DN.Y) said Friday. said to
If the proposed changes from the federal Centers for Medicare and Medicaid Services (CMS) are approved, upstate New York hospitals would receive about $1 billion more each year in higher reimbursement rates.
“This is one of the biggest news stories for upstate New York and upstate health care in decades,” Schumer said at a news conference Friday. “It’s huge. Hospitals in upstate New York have successfully readjusted the so-called Medicare model, so they can generate more than $1 billion in revenue each year into the future.”
Schumer said the interim formula change could be finalized by CMS in August and would be permanent.
“I will use my power as the leader of the majority to make sure it sticks. It will certainly continue,” he said.
Schumer said the Medicare Wage Index rate is used to determine how much the U.S. government pays hospitals for labor costs when treating Medicare patients. Each metropolitan area is assigned a rate that indicates whether it is above or below the national average for medical staffing costs, with metropolitan hospitals receiving only 86% of what the average hospital received over the past 40 years. I have not received.
Proposed rule changes would increase that percentage to 122% of what the average hospital receives in wage adjustments, $192 million more annually for metropolitan hospitals and $84.7 million annually for Albany Medical Center hospitals. More, Saratoga Hospital receives $2.7 million more annually.
The money is incorporated into each hospital’s overall budget and is used at the hospital’s discretion.
“This means that health care for New Yorkers across the region will be vastly improved,” said Schumer. “This means more doctors will be attracted to our hospitals and nurses. This means people will have to wait less, which means they will be able to get appointments more quickly.”
The funding increase could be significant for Ellis Medicine, which posted a loss of $64 million last year. Under the proposed rule change, the hospital would now receive $30.6 million in additional Medicare reimbursement annually.
Ellis President and CEO Paul Milton said Friday: “If we take a step back, it is clear that the pandemic is having a huge impact on hospitals, including Ellis. It puts you on a level playing field where it should have been.”
Milton said on Friday that the proposal should allow Ellis Medicine, which is expected to lose about $20 million this year, to become profitable within two years.
Milton credits US Congressman Paul Tonko (D-Amsterdam) for his work on the issue, and says the increased revenue should benefit Ellis patients.
“It’s a real stabilization of their hospital,” Milton said. “So we can continue to have the talent we need, and we can invest in the capital we need, such as new technology. We will have the funds to get the right doctors, nurses, technology and equipment.”
Schumer said he would launch a full press coverage to ensure changes to the ceremony were finalized, and said he would work with his fellow representatives and New York hospitals to support the proposal.
“This is exactly what doctors have ordered to improve healthcare in upstate New York,” he said. “This will make it more accessible, more reliable, lower costs, and the best quality.”
Contact Ted Remsnyder [email protected]. Follow @TedRemsnyder on Twitter.
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