Deficit Reduction                   

Since the summer of 2011, deficit reduction has been an ongoing debate in Washington that the health care industry has been watching very closely.  Through a series of legislative events, hospitals in Florida have sustained over $2.8 billion in cuts to Medicare to pay for the various deficit deadlines.  This is over 11 percent of the Medicare budget for the next ten years.  The Budget Control Act of 2011 and the American Tax Relief Act of 2012 both included Medicare payment reductions to hospitals that paid for part of the deficit.  There have been many reduction proposals that would affect hospitals, and the hospital industry has advocated tirelessly to reduce those impacts.  FHA member hospitals have spent much time with the Florida delegation urging them to protect Florida against proposals that would disproportionately impact the state due to the high Medicare population.  Deficit reduction is ongoing in Washington, and various hospital payment reductions remain a concern as a means to pay for the deficit.   

For more information, contact FHA Vice President of Financial Services Kathy Reep.