Noteworthy News

NAUH Opposes Further Cuts as Part of Fiscal Cliff Solution

The National Association of Urban Hospitals opposes many of the proposed “solutions” to the fiscal cliff crisis because those solutions would come at the expense of private, non-profit urban safety-net hospitals.

If implemented, such cuts would come on top of cuts urban safety-net hospitals are already experiencing.  The cuts already implemented, or scheduled for implementation soon, include:

  • reduced annual Medicare updates
  • penalties through Medicare’s new value-based purchasing program
  • penalties through Medicare’s new readmissions prevention program
  • a reduction of up to 75 percent in eligible hospitals’ Medicare DSH payments that takes effect next fall
  • a two percent cut in Medicare payments as a result of sequestration beginning on January 1

As the fiscal cliff negotiations continue between congressional leaders and the Obama administration, NAUH members will remind their own congressional delegations of the serious cuts urban safety-net hospitals have already suffered and ask them not to support any fiscal cliff solutions that involve still more cuts in Medicare and Medicaid payments to private, non-profit urban safety-net hospitals.


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