photo by Steve VanGunda

Natchez Regional Hospital prenatal nurse Debbie Roberts checks on a newborn Friday afternoon. Labor and delivery accounts for a large amount of the hospital’s Medicaid reimbursements, CEO Scott Phillips said. Those reimbursements are at risk as the state decides how to overcome a Medicaid funding gap.

Medicaid cuts would hit hospitals hard

By Adam Koob (Contact) | The Natchez Democrat

Published Saturday, July 19, 2008

NATCHEZ — If Gov. Haley Barbour’s plans to reduce the Medicaid reimbursement rate go through, Natchez hospitals could lose a combined $4.5 million annually.

CEO of Natchez Regional Medical Center Scott Phillips said while some may think the cuts announced last week won’t impact them — they will.

Phillips said if the cuts happen the hospital could potentially lose $2.5 to $3 million per year.

“That has to come from somewhere,” he said.

Phillips said if the hospital were to start losing that much money the loss would have to be covered by deriving more revenue from other areas or limiting services.

“This impacts everyone receiving healthcare,” he said.

But Phillips, like many others in the healthcare industry, is hoping some type of compromise can be reached before the cuts are put in place.

The cuts would be implemented to cover a $90 million deficit in the Medicaid program’s budget.

For months the Mississippi House and Senate have been unable to come to a compromise on how to fund the shortfall.

If no compromise is reached before Aug. 6 the cuts are ready to be implemented.

Phillips said if the cuts happen the hospital would have to make up the revenue from within the hospital.

“We would have to make comparable reductions,” he said.

But Phillips said the cuts should not impact the sale or lease of the facility, which NRMC officials have been preparing for.

Natchez Community Hospital’s CEO Tim Trottier said he was also not looking forward to the cuts either.

Trottier said Community is poised to lose approximately $1.5 million per year.

But Trottier said the hospital will have to absorb the loss.

“We’re financially strong,” he said of the hospital.

And Trottier said he has plans to counter the losses.

“We’ll attack this by growing our business,” he said.

While no one is looking forward to the pending cuts, changes in all types of funding are not uncommon Phillips said.

“It changes constantly,” Phillips said of funding norms. “It’s very dynamic and complex. This isn’t a new problem.”