During this first week of the new year, we have exercised our voice of business by sending a resolution to Gov. Bobby Jindal regarding his proposed Medicaid reimbursement cuts. The final resolution in complete form is below.
Recommended by our Governmental Affairs Committee following their December 13 meeting where the issue was explained thoroughly by Sen. Jack Donahue, it has since been thoroughly vetted by G.A. committee members with input from hospital CEO's. The conversations will certainly continue in a unified effort to affect the huge financial impact on our hospitals.
Special thanks to Scott Delacroix of Adams & Reese, G.A. Committee Chairman, and James Person of St. Tammany Parish Hospital, Chairman of the Northshore Legislative Alliance (formerly Joint Public Committee) for their work on this critical issue, drafting and refining the resolution, as well as Sen. Donahue for bringing it to our committee's full attention.
The governor is scheduled to speak at the St. Tammany Parish Council chambers tomorrow at noon. Parish President Kevin Davis has invited us to hopefully meet with the governor before his remarks where we will hopefully present the resolution to him.
"The proposed cuts have a ripple effect on the local economy, affecting not just the hospitals but their employees as well," said Delacroix. "St. Tammany Parish has supported Governor Jindal as a Member of Congress and Governor and requests he take into consideration the impact of these policies on one of the fastest growing parishes in Louisiana, and a parish that is key to ongoing and future economic growth of businesses along the nationally popular I-10/I-12 corridor."
The St. Tammany West Chamber of Commerce urges not only our member businesses and their employees, but all of parish residents to contact the Governor's office at 225-342-7015 or www.gov.state.la.us, in opposition of these cuts.
Our resolution:
WHEREAS, as the voice of business, the St. Tammany West Chamber represents 1,058 businesses and their nearly 30,000 employees; and
WHEREAS, the payroll of the healthcare sector in Louisiana is larger than the payroll of any other industrial classification in the state; and
WHEREAS, healthcare providers are a major economic influence within St. Tammany Parish; and
WHEREAS, healthcare providers impact overall economic activity, including business transactions, household earnings, jobs and state and local tax collections; and
WHEREAS, hospitals in Louisiana Department of Health and Hospitals Administrative Region 9, including St. Tammany Parish, have annual expenditures of $632 million; and
WHEREAS, hospitals in Region 9 support $3.2 billion in annual business sales; and
WHEREAS, hospitals in Region 9 create $1.3 billion in household earnings within the region; and
WHEREAS, hospitals in Region 9 employ more than 31,837 people; and
WHEREAS, Medicaid rates reimburse healthcare providers less than the cost of providing care and, today, reimburse hospitals less than in 1995; and
WHEREAS, the inadequacy of government reimbursement for healthcare services adversely impacts our local economy as hospitals freeze or reduce capital purchases, consider hiring freezes, halt construction or equipment purchases and consider eliminating vacant positions; and
WHEREAS, St. Tammany Parish has supported Governor Jindal as a Member of Congress and governor and requests he take into consideration the impact of these policies on one of the fastest growing parishes in Louisiana and a parish that is key to ongoing and future economic growth of businesses along the nationally popular I-10/I-12 corridor.
BE IT RESOLVED, that the St. Tammany West Chamber of Commerce hereby expresses its opposition to Medicaid cuts proposed as emergency rules published December 1, 2010 by the Louisiana Department of Health and Hospitals.
FURTHERMORE, BE IT RESOLVED, we urge the Louisiana Legislature to reject the emergency rules or override gubernatorial actions executing such cuts.
FURTHERMORE, BE IT RESOLVED, we urge Governor Bobby Jindal to not balance the state budget on the backs of healthcare providers by further cutting Medicaid rates.
FURTHERMORE, BE IT RESOLVED, we urge the governor and legislature to mitigate Medicaid cuts by considering other public policy alternatives such as using the extended Federal Medical Assistance Percentage (FMAP) this state fiscal year to maximize enhanced federal matching funds, accelerate the use of financial mechanisms such as the Upper Payment Limit program and Certified Public Expenditures and explore alternative funding sources currently being utilized and expanded in other states.
FURTHERMORE, BE IT RESOLVED, we urge the governor and legislature to amend current state laws which disproportionately expose healthcare providers to budget cuts by considering spreading reductions across a larger portion of the state general fund such as statutory dedicated and agency generated funds, non-discretionary portions of the State General Fund, the "All Other" category of the discretionary general fund budget and non-constitutionally protected, non-discretionary budget items.