The Florida Hospital Association (FHA) has completed an analysis of the proposed Centers for Medicare & Medicaid Services (CMS) rule governing the use of intergovernmental transfer (IGT) funds and has determined it will cost Florida’s hospitals more than $4 billion over the next five years. The proposed rule, which was published on January 18, 2007, negates the policies adopted and approved by the federal government for Florida’s Low Income Pool (LIP) program, Medicaid, and the care afforded by these programs.
“This proposal will have a disastrous impact on Florida’s hospital community'” said Wayne NeSmith, President of the Florida Hospital Association. “We are asking the Florida Congressional Delegation to protect our state’s hospitals from these cuts and the communities we serve,” said NeSmith. The analysis developed by FHA shows the annual financial impact on hospitals in Florida exceeds $932 million per year. The rule drastically changes the way Florida funds its Medicaid LIP program. The LIP program provides special Medicaid payments to hospitals based on the amount and types of services provided including pediatric, trauma, rural, and graduate medical education. “If this rule is allowed to go into effect, hospitals across the state and the country will be forced to dramatically reduce services and in some cases, hospitals will close,” according to NeSmith. FHA will continue to meet with the Florida Congressional Delegation and work closely with the American Hospital Association (AHA), the National Association of Public Hospitals (NAPH), and the Safety Net Hospital Alliance of Florida on a Congressional solution.
