Medicare/Medicaid Financial Impact Study-Year Five

In 1999, the Healthcare Association of Hawaii engaged Ernst & Young LLP to conduct a study to estimate the financial impact of the changes in Medicare and Medicaid payments on the Association's hospital and nursing facility members. The initial focus of the Study was to estimate the impact of the Balanced Budget Act on HAH's member hospitals and nursing facilities. The focus was expanded to also provide a picture of the financial results of the industry and the importance the industry has on Hawaii's economy. The Study was intended to be a five-year study, updated each year with current data and information.

The Study has assisted the Association with its efforts in educating the Congressional Delegation, Governor, Mayor, Legislators and the public on the financial condition of the healthcare industry in Hawaii. The message in the Study has been consistent and the 2003 update of the Study continues to highlight the following:

  • Hawaii's healthcare industry continues to play an important role in our economy.

  • The Medicare and Medicaid payment changes have had and will continue to have a significant negative financial impact on the Association's hospital and nursing facility members.

  • The hospitals and nursing facilities provide many benefits to our communities through medical education and community programs some of which may be jeopardized due to increasing financial pressures.

  • The hospitals and nursing facilities incur a significant amount of bad debt and charity care.

  • The population in Hawaii is aging. The cost of providing care is likely to increase while payment for the services from Medicare and Medicaid may not keep up with the increased costs.

  • Many of Hawaii's hospitals and nursing facilities are experiencing declining financial results and financial losses.

  • The hospitals and nursing facilities are also incurring costs related to HIPAA, patient safety and bioterrorism.

The 2003 Study includes more information on Act 294 and the impact on Medicaid reimbursements for the hospital-based and freestanding nursing facilities. In the prior year, sufficient information on the reimbursement methodology and payments was not available.

Should you have any questions or need additional information contact Rich Meiers at 521-8961 .

  • 2003 Report (May take some time to download due to its size.)

  • 2002 Report (May take some time to download due to its size.)

  • 2001 Report

  • 2000 Report

  • 1999 Report
    (You must have Adobe Acrobat Reader, which is free to view these reports.)

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