Transcript Document

Your Community’s Most
Valuable Asset:
(Your Hospital Name)
Keeping Kansas Healthy and
Economically Strong
• Kansas hospitals are proud to provide care to our
communities 24 hours a day, seven days a week,
365 days a year.
• Every year, we serve thousands of individuals and
keep our communities healthy, strong and vibrant.
• This record of service is and always will be our
most valuable contribution to the communities we
serve.
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Caring for all Kansans
Kansas
(Your
Hospital)
Service
Births
Emergency Department Visits
Inpatient Admissions
37,644
1,144,849
304,904
Inpatient Days
1,816,674
Outpatient Visits
7,279,746
Surgeries
260,349
Workforce
Hospital Employees
84,210
Wages and Benefits
$5.3 billion
Source: Kansas Hospital Association/American Hospital Association Annual Survey FY13 and The Importance of the
Health Care Sector to the Kansas Economy: January 2015, Office of Local Government, K-State Research and Extension
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Our Contribution to the
Kansas Economy
Hospitals’ contribution to the local economy is
critical to the economic viability of communities:
• As a major source of employment
• As a purchaser of goods and services
• As a provider of health care services
Kansas hospital and health care services:
• 3rd largest aggregate employer in Kansas
• 4th largest produce of total sales in Kansas
• 5th largest producer of total income in Kansas
Source: The Importance of the Health Care Sector to the Kansas Economy, Office of Local Government, K-State
Research and Extension
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Impact on Jobs
Kansas hospitals:
• Employ approximately 84,210 people
– 4.4 percent of all job holders
• Support an additional 67,962 jobs in other business and
industry
– For every hospital job another 0.81 job supported
• Total employment impact of more than 152,000 jobs
(Your Hospital Name)
• Employs (XXX) people
• Supports an additional (XXX)+ jobs in other business and
industry (number employed times 0.81)
• Total employment impact of more than (xxx – number
employed times 1.81) jobs
Source: The Importance of the Health Care Sector to the Kansas Economy, Office of Local Government, K-State
Research and Extension, January 2015.
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Impact on Income and Sales
Kansas hospitals:
• Generate approximately $5.3 billion in direct labor income
• Impact on income throughout all business and industry of
nearly $8.1 billion
– For every $1 another $0.54 is generated
• Generate more than $2.6 billion on area retail sales
(Your Hospital Name)
• Generates approximately (XXX) in direct labor income
• Impact on income throughout all business and industry of
nearly (XXX)
– For every $1 another $0.54 is generated
• Generates more than (XXX) on area retail sales
Source: The Importance of the Health Care Sector to the Kansas Economy, Office of Local Government, K-State
Research and Extension, January 2015.
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Revenue By Payer
Kansas
20%
28%
20%
32%
Medicare
Medicaid
Commercial
Other
(Your Hospital Name)
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Source: Kansas Hospital Association/American Hospital Association Annual Survey Data, FY13
Hidden Costs
• Charity Care – Financial Assistance
– Statewide - $704.7 million
– (Your hospital) - $$$
•
Bad Debt – Uncollectible charges
– Statewide - $426.2 million
– (Your hospital) - $$$
•
Medicaid and Medicare
– Reimbursement is less than cost of care
– Statewide shortfalls average up to 17%
– (Insert Your Hospital Shortfall)
Source: Kansas Hospital Association/American Hospital Association Annual Survey Data, FY13
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Kansas
Medicaid Program
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Kansas Medicaid Program
KanCare
• KanCare is a managed care solution to slow
the growth of Medicaid costs in Kansas by
controlling costs and improving health
outcomes.
• KanCare went into effect Jan. 1, 2013, and is
estimated to save $1.0 billion over five years.
Vision of KanCare
• To serve Kansans in need with a transformed,
fiscally sustainable Medicaid program that
provides high-quality, holistic care and
promotes personal responsibility.
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Health Plans Serving
Kansas
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Medicaid (KanCare) Expansion
• It is voluntary. The U.S. Supreme Court ruled the
federal government cannot force states to expand
Medicaid. A state may elect to expand coverage and
then later decide to discontinue.
• The federal government will pay 100% of the cost of
the newly eligible Medicaid population for the first
three years (2014-2016). This percentage will be
reduced until it reaches 90% in 2020, and it will remain
at that level.
• The Kansas Department of Health and Environment
commissioned a study that estimates KanCare
expansion would bring $2.1 billion in federal dollars to
Kansas over the first three years and nearly $8.0
billion over the next ten years to care for the most
vulnerable Kansans.
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Eligible Kansans
138% FPL
Approximately
78K People
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Source: Kansas Hospital Association
Who?
•
Approximately 144,000 Kansans would become eligible for
coverage if KanCare is expanded.
•
The income at 138 percent of the Federal Poverty Level for a
family of three is $27,310 a year or $2,276 a month.
•
The majority of Kansans who would be eligible under KanCare
expansion work as dishwashers, housekeepers, health care
support workers, janitors, nursing assistants, landscapers, bus
drivers, child care workers, medical assistants, retail sales
people and fast food workers in Kansas communities.
•
78,000 Kansans fall into the coverage gap – they don’t qualify
under the current KanCare program and are too poor to
qualify for subsidies in the Health Insurance Marketplace.
•
Illegal immigrants are NOT eligible if Medicaid is expanded in
Kansas.
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Numbers of Kansans Under Age 65
Earning Incomes at or Below 138% FPL
Medicaid DSH Payments
• It is estimated the Medicaid DSH payments for
Kansas hospitals will gradually decrease beginning
in 2016 reaching nearly 50 percent in 2018 . This
and other cuts were made anticipating a reduction
in care for low-income patients at hospitals due to
Medicaid expansion.
• If Kansas does not expand Medicaid, those
payment cuts will still occur. Kansas community
hospitals would then lose approximately half of the
$51 million in DSH funds they receive each year
while absorbing the cost of the same number of lowincome patients as in previous years.
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Kansas Medicaid DSH
(obtained by 55 hospitals)
“IMD” – Institute for Mental Disease
Source: Kansas Department of Health and Environment
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Statewide Impact
Source: HANYS 10-year estimated impact of the ACA; Kansas Department of Health and Environment data;
Kansas Hospital Association data and calculations
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Annual Impact of
KanCare Expansion on
(Your Hospital Name)
ACA Medicare Cuts (10-Year Average)
$
(XX,XXX)
ACA Medicaid DSH Cuts (Beginning in 2014)
$
(XX,XXX)
$
(XX,XXX)
$
XXX,XXX
Total ACA Reductions
KanCare Expansion (Annual Increase)
Net Gain/Loss
$ (XXX,XXX)
Annual Impact Beginning in 2015
Source: HANYS 10-year estimated impact of the ACA; Kansas Department of Health and Environment data;
Kansas Hospital Association data and calculations
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Invest in a Kansas Solution:
KanCare 2.0
• Kansas hospitals believe Kansas should thoughtfully
develop a unique, Kansas-based solution that takes
advantage of the federal funds to build upon and
improve our current KanCare program.
• KanCare 2.0 will add needed dollars that will assist
in growing the economy, creating jobs and
supporting the state’s budget through increased
revenues and cost savings.
• The cost of caring for those who would be covered
by Medicaid expansion is already being absorbed by
hospitals, health care providers, businesses and
other payers through uncompensated care and
higher insurance premiums.
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Economic and Employment
Effects of Expanding KanCare
• KanCare expansion could result in a net cost
savings for the state of Kansas of $35.7 million
from 2016-2020.
• Report estimates the federal funding associated
with KanCare expansion will help create
approximately 2,456 new jobs in 2016 and
3,830 new jobs by 2020. These jobs will not only
be in health care, but also in those industries
that support the Kansas health care industry.
Source: Economic and Employment Effects of Expanding KanCare in Kansas, authored by researchers at
Regional Economic Models, Inc. and George Washington University, Nov. 2014.
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Kansans
Support Medicaid Expansion
Kansas voters (by a 48-point margin) want the state
to accept federal money to cover more uninsured
adults with health coverage through Medicaid or by
helping uninsured individuals buy private plans
(72% vs. 24%).
Support for using federal funds to provide health
care under Medicaid crosses all party lines with
59% of Republicans, 75% of Independents and 92%
of Democrats in favor.
Source: February 2014 poll by the American Cancer Society Cancer Action Network.
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Your Community’s Most
Valuable Asset:
(Your Hospital Name)
• Hospitals are a key ingredient to Kansas’ quality
of life and to keeping our communities healthy
and vibrant.
• We urge our legislators, members of Congress,
and community leaders to recognize that Kansas
hospitals are instrumental to supporting the state
and local economy. Steps need to be taken to
continue to invest in our state’s health care
system.
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For More Information
Insert your Name
Hospital
Contact Information
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