Louisiana Hospital Association CEO John Matessino says disputes between hospitals and insurers might become more frequent in the current climate. “You’re going to see more of that,” he told the Rotary Club of Baton Rouge earlier today. “Hospitals don’t have anyplace to turn except for the paying customer.” Matessino says cuts in Medicare and Medicaid, government programs for the elderly and the poor, and the rising cost of care force a “hidden tax” onto other payers. Matessino didn’t mention any organizations by name; Blue Cross and Blue Shield of Louisiana and the Franciscan Missionaries of Our Lady Health System, which runs Our Lady of the Lake Regional Medical Center, have been involved in public disputes over rates in recent years.
Matessino says 38% of association member hospitals reported losing money last year, while 19% had profit margins of 2% or less. He says chances of success often hinge on location. “If you’re a hospital, and your patient mix has a lot of commercial [customers], you’re doing pretty well,” he says. “If you happen to be someplace where you have a lot of Medicare and Medicaid, you’re struggling.” Matessino urged the audience to think of hospitals as economic engines that create direct and indirect jobs, including construction jobs.—David Jacobs
