Press Release: Florida's Hospitals ask Legislature to "Do No Harm"

Mar 13, 2007
By: Rich Rasmussen

IMMEDIATE RELEASE
March 13, 2007

Florida’s Hospitals Ask Legislature to “Do No Harm”

Tallahassee – Faced with the elimination of Florida’s personal injury protection (PIP) insurance, and a possible loss of more than $350 million from the PIP program, hospital CEOs from across the state are asking legislative leaders in a press conference held today in Tallahassee to “DO NO HARM” and continue Florida’s no-fault system.

“Florida’s hospitals are under intense pressure to cover our state’s growing uninsured population which topped more than 3.2 million people in 2006 and at a cost of treating patients in excess of $2 billion.  We are asking the Legislature to do no harm to Florida’s hospitals, and re-enact PIP and avoid a $350 million cost shift from auto carriers to hospitals and health insurers,” said Wayne NeSmith, President of the Florida Hospital Association (FHA).

The financial picture for Florida’s hospitals may be drastically altered even further if cuts proposed by the federal Centers for Medicare & Medicaid Services (CMS) are approved.  Under the federal proposal, Florida’s low income pool (LIP) program, which was created as part of last year’s Medicaid reform plan, would see a cut of more than $4 billion over the next five years.  This is in addition to the $100 billion in Medicare and Medicaid cuts, nationwide, proposed in the President’s budget.

“Florida’s hospitals have never abandoned their communities.  Through the hurricanes of 2004 and 2005, we were there.  We have accepted our place in the community to provide healing but our ability to fulfill our mission is threatened and that is why we are asking the Legislature to act and not increase the financial burden on hospitals.  Our message is simple, please do no harm,” said NeSmith.

Florida’s no-fault insurance program was created in 1971 and provides coverage up to $10,000 to help pay for the costs of treating an injured driver.  An FHA study, conducted last year, found that 40 percent of drivers involved in motor vehicle crashes had no health insurance and that PIP was the only means they had for paying medical expenses.  The average inpatient claim for treating a victim for an automobile accident is more than $54,000, the study found.

“It makes no sense that we would require payment for the repair of the automobile’s fender, but refuse to require payment to heal the driver’s broken arm,” said NeSmith.

FHA is supporting Senator Burt Saunders’ (R-Naples) legislation to extend the sunset date of PIP coverage (SB 1450). Speakers at the press conference included:

Senator Burt Saunders (R-Naples)

Jim Nathan, Chair, Florida Hospital Association Board of Trustees, and President/CEO, Lee Memorial Health System, Ft. Myers

Rick Pollack, Senior Vice President, American Hospital Association

Dr. David Siegel, President of the Florida College of Emergency Physicians

FHA is a Tallahassee-based association which advocates on behalf of Florida’s hospitals and health systems.

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