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HJR 26 - Enrolled - PDF
HJR26
189374-3
By Representatives Shedd, Standridge, Crawford, Wingo,
Jackson, Fincher, Howard, Wilcox and Chestnut
RFD: Rules
First Read: 09-JAN-18
HJR26
ENROLLED, House Joint Resolution,
URGING THE ALABAMA CONGRESSIONAL DELEGATION TO MAKE
A NEW, EQUITABLE MEDICARE PAYMENT FORMULA.
WHEREAS, Alabama's hospitals have provided excellent
care to their communities for many years and were, in fact,
the prototype for modern hospitals across the country due to
the influence of Senator Lister Hill and his vision for
community-supported modern medical facilities; and
WHEREAS, over time, Alabama's hospitals have not
only provided good care to patients, but they have done so in
a very efficient manner; hospitals have a $20 billion economic
impact in Alabama each year, directly employing nearly 90,000
people and each hospital job supports another job in the
community; and
WHEREAS, rural hospitals are often the largest
employer in a community; Alabama's rural hospitals contribute
over $550 million in payroll and benefits every year to the
state's economy; and
WHEREAS, the formula for calculating Medicare
hospital payments has been especially challenging for
Alabama's hospitals due to the inequities built into the
payment calculation, specifically the factor used to
incorporate variations in wages; and
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WHEREAS, by applying this factor, some hospitals in
the country receive a significantly higher payment for the
exact same procedure as those performed in Alabama, and with
approximately 40 percent of Alabama's patients covered by
Medicare, this inequity is crippling for many hospitals; and
WHEREAS, rural hospitals in Alabama are facing
significant challenges with high rates of uninsured patients,
a population with chronic conditions, and lower than average
reimbursement rates, forcing six rural hospitals to close
since 2011; statewide, 96 percent of rural hospitals are
operating in the red, threatening access to care for all
Alabamians; and
WHEREAS, Alabama's hospitals are facing a uniquely
burdensome situation, reporting in a recent statewide
financial survey that the average hospital operating margin
has fallen to negative 2.7 percent; in total, 49 percent of
hospitals in Alabama had negative total margins; and
WHEREAS, as Alabama's lawmakers, we understand the
tremendous financial pressures Congress is facing with the
federal deficit and know that spending reductions have to be
made; however, we also believe it is our responsibility to
speak on behalf of Alabama's hospitals that are currently in a
very precarious financial situation; and
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WHEREAS, since 2011, 11 Alabama hospitals have
closed and many others face significant financial challenges;
and
WHEREAS, while there are national groups working to
address some of these issues, we worry their recommendations
and subsequent actions may come too late for many of our
hospitals, and we are concerned about what this could mean for
access to health care in Alabama; now therefore,
BE IT RESOLVED BY THE LEGISLATURE OF ALABAMA, BOTH
HOUSES THEREOF CONCURRING, That we express our gratitude for
the previous leadership of the Alabama Congressional
Delegation on this issue, and urge the delegation to make
resolving this decades old problem a priority and find a
solution to ensure an equitable Medicare payment formula for
all hospitals.
BE IT FURTHER RESOLVED, That a copy of this
resolution be provided to each member of the Alabama
Congressional Delegation so that the strong sentiments of this
body on this important issue shall be known.
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Speaker of the House of Representatives
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in
and was adopted by the House 11-JAN-18.
Jeff Woodard
Clerk
Senate 15-MAR-18 Adopted