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. 2 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 3 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 4 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. 5 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. 6 Revenue By Payer Kansas 20% 28% 20% 32% Medicare Medicaid Commercial Other (Your Hospital Name) 7 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 8 Kansas Medicaid Program 9 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. 10 Health Plans Serving Kansas 11 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. 12 12 Eligible Kansans 138% FPL Approximately 78K People 13 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. 14 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. 16 16 Kansas Medicaid DSH (obtained by 55 hospitals) “IMD” – Institute for Mental Disease Source: Kansas Department of Health and Environment 17 Statewide Impact Source: HANYS 10-year estimated impact of the ACA; Kansas Department of Health and Environment data; Kansas Hospital Association data and calculations 18 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 19 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. 20 20 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. 21 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. 22 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. 23 For More Information Insert your Name Hospital Contact Information 24