Key Issues Medicaid Reimbursement Medicare Reimbursement

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Connecticut hospitals serve as the healthcare safety net for their communities, caring for all regardless of ability to pay. Yet, because of continued deterioration in the financial health of these hospitals, their ability to ensure continued access to necessary healthcare services is threatened. Many factors impact hospitals' financial viability including:

• Connecticut hospitals provide $451 million annually in unreimbursed care to the uninsured and to patients covered by state and federal programs (Medicaid, the State-Administered General Assistance program, and Medicare) which do not pay for the full cost of care.
• Increasing expenses related to recruiting and retaining healthcare professionals.
• Rising costs acquiring advanced technology.
• The lack of capital funds to update and improve facilities.
• Providing charity care for an increasing number of individuals who lack insurance or the ability to pay for their care.

Connecticut hospitals remain in fragile financial health. The fundamental problem remains that the constant gap between current cost and payment is impairing the ability of Connecticut hospitals to meet today's obligations and prepare for tomorrow.

While the Legislature and Governor M. Jodi Rell provided positive first steps towards strengthening these community resources in the 2008-09 biennial budget, much more needs to be done. CHA continues to advocate for rate increases in Medicaid and SAGA that reflect the actual costs of care.