The multi-million dollar funding deficits caused by severe cuts in Medicare and Medicaid reimbursement are forcing hospitals nationwide to eliminate positions and lay off employees. This stark reality has to be addressed by hospital PR departments up front, before they make dramatic cuts, says the Michigan Health & Hospital Association. This is particularly important for nonprofits. The Association's statewide poll of registered voters found that 62 percent of those surveyed are worried that their local hospital will have to cut staff and services because of financial losses.
The survey of 600 voters measured the perceptions and concerns of Michigan voters regarding the financial realities facing the state's 154 nonprofit hospitals.
Where many hospitals fall short is in communicating about their financial pressures earlier than later, says Patrick Foley, MHHA's director of communications. "Hospitals have been reluctant to have candid discussions about how their quality of care will be affected by the current reimbursement environment until something drastic happens."
Chances are your community is ready to learn about the tough issues, according to the study's key findings. They include:
- More than 90 percent of those surveyed believe hospitals must have adequate margins to reinvest in expanding access to care, better technology, maintaining and updating hospital buildings and recruiting/retaining highly skilled employees.
- 87 percent were concerned about sharply escalating costs of prescription drugs and the negative impact those costs will have on their local hospital.
- Many were dismayed that money from the state's tobacco lawsuit victory have not been earmarked for healthcare services. Almost 75 percent believed some of the tobacco settlement should be spent on community hospitals that provide healthcare services to people with chronic health problems related to smoking.
Last week, the Brigham and Women's Hospital in Boston that cut 110 positions and laid off 20 employees announced it was among the latest victims of Medicare cuts.
In explaining the cuts, Vin Petrini, BWH's chief public affairs officer said it was important to stress the "drivers of change" with regard to federal cuts and reduction in payments from managed care organizations. In addition, BWH is having frank discussions about how it plans to rebound from this economic environment by raising the cost of medical services to boost revenue.
Brigham's sister institution, Massachusetts General Hospital, which recently eliminated 130 jobs has already begun to raise its retail prices by 10 percent.
(MHHA, Patrick Foley, 517/323-3443; BWH, Vin Petrini, 617/732-5008)