HDMC News & Press Releases
Hi-Desert Medical Center affected by state and federal cutbacks
Hi-Desert Medical Center, like other hospitals across the state, is experiencing significant cuts to state and federal reimbursements. The Center for Medicare and Medicaid Services (CMS) has approved the state of California's request to reduce certain Medi-Cal provider payments by 10 percent. The state's Medi-Cal program (which finances healthcare for the poor) already ranks last in the nation in payments to doctors and hospital who care for the state's most vulneratble patients.
"These cuts will only serve to make a very difficult situation worse," says Lionel "Chad" Chadwick, PhD, Chief Executive Officer of Hi-Desert Medical Center and the Hi-Desert Memorial Health Care District. "Of particular concern to our District is the severe cut that has been imposed on distinct-part skilled nursing units such as our Continuing Care Center (CCC)."
The healthcare District's CCC is now expected to lose $900,000 in state Medi-Cal reimbursement this year. Centers such as the CCC often care for patients with complex medical needs or those who require specialized services not available in other nursing homes. More than 10 percent of California's skilled nursing beds are operated by acute care hospitals.
In addition to these drastic reimbursement reductions, the healthcare District is facing federal Medicare cuts, increased labor costs and increased charity care due to high unemployment in the Basin. The District has lost over three million dollars during the first four months of the current fiscal year, which began July 1. "These losses are clearly unsustainable," Chadwick said.
In a timely response to this "perfect storm" of financial challenges, the District's Board of Directors is proactively engaging with District management to examine steps that can reduce the risk of further erosion of the medical center's finances. All options are being pursued at this time: staff is identifying ways to reduce labor and supply costs (as appropriate and clinically safe), improve revenues by growing volumes and identifying programs that may need to be downsized in the future in the event this downward trend continues, and to partner with its doctors to find solutions. "While we don't want to lose momentum on our future plans, we may also need to re-evaluate the timing of our Master Facilities Plan projects -- considering delays in certain capital expenditures in order to retain needed cash," noted Chadwick.
"Hospitals today are experiencing many difficulties in response to the fragile economy and state and federal budget reductions," said Chadwick. "Our governing Board, management team, employees and doctors are standing together to weather this storm, while maintaining our commitment to safeguarding valuable healthcare services our communities rely upon."
Residents can support the local healthcare District by contacting their state legislators to voice alarm over these cuts and urge exemptions for rural facilities such as the CCC. Also, whenever possible, continuing to utilize the District services provided here locally, such as inpatient, outpatient, laboratory, medical imaging and rehabilitative services will be helpful.
