Union Community Care could lose an estimated $4 million in Medicaid revenue once changes to the program take full effect, according to President and CEO Alisa Jones.
Courtesy of Union Community Care
How will Medicaid changes impact hospitals, providers in central Pa.?
By Lucy Albright/LNP | LancasterOnline
Courtesy of Union Community Care
Union Community Care could lose an estimated $4 million in Medicaid revenue once changes to the program take full effect, according to President and CEO Alisa Jones.
Some portion of revenue worth nearly $130 million to four central Pennsylvania hospitals’ last fiscal year is now in jeopardy, but none of the four have provided estimates for the impact and how services could be affected.
The anticipated changes in revenue — due to the recently signed federal tax and spending cut bill — will come as new rules decrease the number of patients who pay through Medicaid and increase the number of patients who cannot pay for the care they receive.
“Significant cuts to coverage will drive up the number of uninsured in the state and therefore add to uncompensated care in our hospitals,” Hospital and Healthsystem Association of Pennsylvania President and CEO Nicole Stallings told the Morning Call newspaper in an interview before the Act passed. Those who lose insurance will delay care, she said, which will increase future costs of care and could also lead to lost work time.
Penn Medicine Lancaster General Health did not respond to a request for comment about the financial impact of the Medicaid changes and how they might impact services.
UPMC spokesperson Amber Depew said it is “committed to supporting access to essential care for all our patients across the communities we serve.”
“Proposed changes to health care funding could jeopardize coverage for millions of Americans and reduce access to care, especially for vulnerable populations,” said Penn State Health spokesperson Scott Gilbert. “We are actively evaluating these implications and will work with policymakers to protect our integrated mission ….”
A WellSpan representative deferred comment to the Hospital and Healthsystem Association of Pennsylvania and Depew also suggested contacting HAP.
HAP declined LNP | LancasterOnline’s request for an interview with Stallings.
How changes hit bottom line
Signed into law July 4, the legislation includes establishment of work requirements for Medicaid, and it is expected that millions of recipients will fail to navigate those new rules and lose coverage, KFF Executive Vice President for Health Policy Larry Levitt said during a virtual press event. A nonprofit that aims to provide nonpartisan health information, KFF’s work includes policy analysis, polling and journalism.
New six-month renewal periods for Medicaid would also cause some people to fall through the cracks, Levitt added.
In Pennsylvania’s 11th Congressional District, which includes Lancaster County and part of York County, 13,889 people could lose Medicaid coverage due to the changes, according to an estimate from the governor’s office.
The new legislation also limits provider taxes, which states have used to increase Medicaid payments to hospitals and other providers, according to KFF Health News.
The limits on provider taxes equal a roughly $4.5 billion cut to hospital payments that will take place over the next decade, according to a press release from HAP.
A $50 billion rural health fund created by the legislation won’t fill the “massive gap” in funding, Pennsylvania Department of Human Services Press Secretary Brandon Cwalina said.
Lancaster County hospital finances for the 2024 fiscal year
Lancaster General Hospital:
- Net patient revenue: $1,421,482,000
- Percent of uncompensated care: 1.16%
- Medical assistance (Medicaid) share of net patient revenue: 6.25%
Penn State Health Lancaster Medical Center:
- Net patient revenue: $161,173,000
- Percent of uncompensated care: 0.93%
- Medical assistance (Medicaid) share of net patient revenue: 7.73%
UPMC Lititz:
- Net patient revenue: $119,868,000
- Percent of uncompensated care: 3.67%
- Medical assistance (Medicaid) share of net patient revenue: 5.22%
WellSpan Ephrata Community Hospital:
- Net patient revenue: $305,081,000
- Percent of uncompensated care: 1.64%
- Medical assistance (Medicaid) share of net patient revenue: 7.31%
Source: Pennsylvania Health Care Cost Containment Council.
Clarity from one health provider
Union Community Care, a major provider of health care for uninsured and underinsured Lancaster Countians, could lose an estimated $4 million in Medicaid revenue once changes take full effect, President and CEO Alisa Jones said.
To make up for the expected decrease in Medicaid coverage among patients, Jones said that Union will need to increase revenue from other sources and decrease costs.
“There is no way to make up a $4 million dollar shortfall with just one strategy. So it’s a multi-pronged strategy …,” Jones said.
Cost cuts have yet to be determined, Jones said, but she noted the organization is looking to technology. For example, it has piloted the use of remote patient monitoring, which can cut down on the need for in-person visits and reduce the need for patients to spend money on transportation or child care. The technology can monitor things like blood pressure and blood sugar.
Union will do everything it can to avoid cutting staff, Jones said.
To increase revenue, Union is planning to expand its pharmacy program, Jones said, which now has three locations.
Strategies to attract more patients who have health insurance are also possible, according to Jones, who added that Union is open to everyone at its nearly 20 locations.
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