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The latest national snapshot of hospitals’ financial circumstances from Kaufman Hall reinforces something California’s hospitals know all too well: A dire situation is growing even worse.
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For nearly five decades, California’s Medical Injury Compensation Reform Act (MICRA) has been a bulwark — protecting affordable access to quality care. Over the years, however, a growing concern — over the longstanding $250,000 cap on non-economic damages — began to arise from attorneys seeking greater compensation for injured patients.
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As the race between variants and vaccinations presses on in California, recent data reveal another troubling aspect of the pandemic: the fact that vaccination rates are disproportionately affecting disadvantaged communities, including many communities of color.
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In a little more than a month, the Centers for Medicare & Medicaid Services (CMS) will issue a final rule of significant importance for California’s hospitals: a decision that could alter the way Medicare adjusts hospital payments for geographic differences in labor costs (known as the Area Wage Index).
Their proposal? Take money from hospitals in California with high wages to give to hospitals in states with lower wages. CMS suggests this is an effort to address longstanding inequities in the wage index and to help rural hospitals.