Morning Briefing
Summaries of health policy coverage from major news organizations
Gov. Christie's Budget Plan Calls For Steep Cuts To State Hospitals' Charity Care
New Jersey Gov. Chris Christie鈥檚 seventh budget proposal, released on Tuesday, sticks to his pledge against raising taxes, but it assumes that public-sector unions agree to benefit cuts. The $34.8 billion plan also includes steep cuts to state hospitals to fund so-called charity-care cases, which involve treating uninsured or underinsured patients. (Haddon, 2/16)
Community Health Systems Inc.鈥檚 share price plummeted Tuesday after a weak earnings report, the latest threat to U.S. hospital investors who have seen big gains of recent years from an improving economy and the 2010 federal health law largely erased in recent months. Community announced Monday that revenues in the last quarter of 2015 fell 2.4% compared with the final three months of 2014. The company added it was setting aside $169 million to cover unanticipated losses on unpaid bills. (Weaver, 2/16)
Shares of hospital operator Community Health Systems fell more than 25 percent after the company reported an unexpected quarterly loss due partly to lower hospital visits from a year ago and slower-than-expected benefits from an acquisition. (2/16)
News outlets also report on the Centers for Medicare & Medicaid Services' upcoming hip-knee pilot program and the historical relevance of the hospital debate reverberating through聽'Downton Abbey' in its final season聽鈥
Medicare appears on track to start in April a test program that will make about 800 hospitals financially responsible for how well people fare after knee and hip replacements, despite pleas from industry groups for more time to prepare for the major reimbursement change. The Centers for Medicare and Medicaid Services seems unlikely to offer further concessions on its Comprehensive Care for Joint Replacement program after having last year shifted away from the original January 2016 start date. The draft proposal for the CJR program was first unveiled in July 2015. (Young, 2/16)
This season, Downton Abbey has a new plot line that has health wonks on the edge of their seats: a heated debate about hospital consolidation that closely parallels what鈥檚 going on in the U.S. health care system today. It鈥檚 1925 for the lords and ladies at Downton Abbey. A big hospital in the nearby city of York is making a play to take over the Downton Cottage Hospital next to the posh estate. Or as Maggie Smith鈥檚 character sees it, 鈥淭he royal Yorkshire county hospital wants to take over our little hospital, which is outrageous!鈥 (Gold, 2/17)