Dayhoff Westminster Soundtrack: "ObamaCare" Poses Uncertainty for Maryland's Medical Community

Saturday, March 27, 2010

"ObamaCare" Poses Uncertainty for Maryland's Medical Community

Maryland Senate Republican Slate: "ObamaCare" Poses Uncertainty for Maryland's Medical Community

While Governor Martin O'Malley and state Democrats were praising the passage of the federal health care bill this week, the implementation of the new federal requirements poses great uncertainty for Maryland's medical practitioners and hospitals.

Columnist Barry Rascovar of The Gazette analyzes the impact on Maryland's delicately-balanced health system and concludes that "the long-term implications of this law could create a major earthquake in Maryland."

To read the full Rascovar article, click here. Some highlights are posted below:

"As a result of this law, the growing scarcity of physicians in parts of the state could spread. Financially pinched hospitals could see their predicaments worsen. The state's unique rate-setting system for hospitals, established 40 years ago, might have to be junked or modernized."

"Maryland's medical system could find itself ill-equipped to absorb an additional 600,000 patients who previously lacked coverage."

"So far, the governor and legislators have managed to avoid confronting that issue. But pressures are building on hospitals in Maryland, thanks in no small measure to the willingness of state regulators in recent years to favor insurers over medical centers."

"Hospital reserve accounts aren't yielding any interest to help support health programs. Philanthropic gifts are way down. Yet, the demand for costly emergency room services and inpatient admissions are surging, particularly among the recently unemployed who lack insurance. This situation might deteriorate under the new health reform law, which mandates $500 billion in Medicare cuts to doctors and hospitals over the next decade."

"Sharp reimbursement reductions might persuade more practicing physicians to retire early, switch careers or refuse to take Medicare and Medicaid patients - just what we don't need with a tidal wave of newly insured patients about to flood waiting rooms."

"As for Maryland hospitals, they could face a double-whammy: State regulators not only will implement painful Medicare rate reductions, they will go further and cut hospital charges even more dramatically to maintain the state's status."

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20100327 sdosm MSRS ObamaCare Poses Uncertainty for Mds