Will Health Care Reform Close Poorly-Performing Hospitals?

BY CHRISTIAN BRYANT



You're watching multisource business news analysis from Newsy.



A new report by the journal Health Affairs says poorly performing hospitals could face the risk of financial failure under the health reform law. U.S. News & World Report reports:


"The United States' so-called 'worst' hospitals are home to a significantly larger pool of elderly, poor and minority patients than are the nation's better quality/lower cost institutions... While elderly black Americans constitute nearly 7 percent of the patients in the country's 122 'best' hospitals, they make up 15 percent of patients among the nation's 178 'worst' health care facilities"

The Washington Post's Sarah Kliff explains that a provision in the law acts as a double-edged sword. It's an incentive program that could help well-performing hospitals but hurt those that aren't doing so well. She writes:

"The health reform law has a number of mechanisms to try to make bad hospitals better. Chief among them is a new incentive payment system that starts next year, which will give bonuses to hospitals that improve outcomes. Meanwhile, those that don't will take a pay cut..."

The report shows that the nation's worst hospitals are mostly in the South and service mostly elderly, poor and minority patients. This highlights an unintended effect of the health reform law: the risk these hospitals might close due to financial pressures and worsen socioeconomic disparities in health care. NPR's health blog outlines:

"Whether poor-performing hospitals will lose part of their reimbursement — possibly even going out of business as a result — or institute new and effective quality improvement efforts is unclear."

Meanwhile, Republican are still fighting to repeal the health care reform law they've branded "ObamaCare" -- They presented a petition Wednesday calling for reform. It had 1.6 million signatures.

But the chances they find success before the 2012 election are unlikely. Here's CNN's John King.

"You remember, of course, that repeal 'ObamaCare' was a signature slogan of the Tea Party as it helped Republicans to giant successes in last year's midterm elections. That repeal effort now though has zero chance of short term success. Democrats control the senate. President Obama, of course, has 15 more months at the White House..."

The health reform law changes would take place in 2014 but the Supreme Court could rule on the constitutionality of all or part of it as early as next year.



Transcript by Newsy

Category:

News & Politics

Tags:

• obamacare
• health care reform
• health care poor hospitals
• poor performing hospitals