FOR IMMEDIATE RELEASE
WASHINGTON — More than 250 essential hospitals and health systems have signed a letter to Congress urging lawmakers to avoid a devastating, $8 billion cut to Medicaid disproportionate share hospital (DSH) funding scheduled for Jan. 1, 2025.
The looming cut and another $16 billion in cuts over the following two federal fiscal years would undermine America’s health care safety net and significantly reduce essential hospitals’ ability to provide lifesaving services to the communities they represent, the hospitals say in the letter.
“Not only does Medicaid DSH ensure access to care for millions of people, it also enables our hospitals to provide essential services to their communities, including top-level trauma, burn, and neonatal intensive care,” the hospitals say. “The need for DSH funding is even greater now, as hospital expenses…continue to increase since the pandemic.”
The letter asks Congress to eliminate the remaining $24 billion in cuts scheduled for FYs 2025 through 2027 and to protect the safety net.
“At a time of substantial and prolonged instability within the health care system, it is imperative that Congress eliminate the totality of Medicaid DSH cuts once and for all,” the hospitals added. “Our hospitals need the financial certainty such action would bring so they can continue providing needed care to the disadvantaged patients they disproportionately serve.”
The hospitals sent the letter to Senate Majority Leader Chuck Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.); and House Speaker Mike Johnson (R-La.) and Minority Leader Hakeem Jeffries (D-N.Y.).
Over the past decade, Congress has delayed or eliminated Medicaid DSH cuts more than a dozen times in strongly bipartisan votes. Those actions reflect advocacy by America’s Essential Hospitals and a recognition that predicted reductions in the number of uninsured used to justify the cuts have not materialized.
# # #
About America’s Essential Hospitals
America’s Essential Hospitals is the leading association and champion for hospitals dedicated to equitable, high-quality care for all, including those who face social and financial barriers to care. Since 1981, America’s Essential Hospitals has advanced policies and programs that promote health, health care access, and equity. We support our more than 300 members with advocacy, policy development, research, education, and leadership development. Communities depend on essential hospitals for care across the continuum, health care workforce training, research, public health and health equity, and other services. Essential hospitals innovate and adapt to lead all of health care toward better outcomes and value.
Contact:
Carl Graziano
cgraziano@essentialhospitals.org
202.585.0102
Author