Trauma centers in danger; face possible closures
If your trauma center is skirting the edges of profitability, pending cuts in the Medicare and Medicaid programs could force its closure, a recent national study has found.
The Hospital Research and Education Trust interviewed 70 trauma center directors in 12 metropolitan areas and determined that many will be at risk if Congress makes the types of spending cuts considered last year.
"Proposed Medicaid and Medicare payment cuts are likely to eliminate the delicate financial balance that many urban hospitals have achieved in providing trauma care," says Gloria Bazzoli, PhD, vice president for research at the Princeton, NJ-based trust.
She projected that the cutbacks could cause a 14% reduction in hospital reimbursement.
In the past, public hospitals have been able to offset such losses through greater tax revenue, but the financial squeeze many major cities face may preclude this, the study says.
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