by
Glenda Fauntleroy, DOTmed News | October 07, 2011
From the October 2011 issue of HealthCare Business News magazine
According to Wickouski, during bankruptcy proceedings, while a hospital’s finances may be in critical condition, the standards of patient care are still important and under scrutiny.
It turns out that the Federal Bankruptcy Code requires the appointment of a patient care ombudsman in every hospital case. That individual is responsible for monitoring the quality of care and reporting to the court, explains Wickouski.
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The ombudsman is an independent professional, not an employee of the hospital, so he or she does not have the power to make changes if necessary.
“In my experience, however, most hospitals will correct any problems found once the ombudsman has brought them to the attention of the hospital, even before formal reports are made with the court,” says Wickouski. In most cases, the ombudsman continues in the role for the duration of the bankruptcy case.
A grim outlook?
At the AHA, Steinberg says they are hoping for government action to help the economy improve and avoid future hospital closings, especially those due to Medicaid cuts.
“Some of the actions that were taken in the first round of stimulus funding to states were a huge infusion of dollars that helped stave off some of the Medicaid cuts,” she says. “Of course now that money has expired and we’re seeing the effects of that.”
Medicaid accounted for 15.4 percent of state budgets in 2010, according to a report in the Wall Street Journal, and is an area where governors have almost universally proposed cuts. States no longer have funding help from the expired Stimulus Act of 2009.
An analysis released September 9 by the AHA and conducted by Tripp Umbach, a firm specializing in economic impact studies, paints a grim forecast for the future. If Congress fails to compromise on spending cuts, Medicare will be subject to a 2 percent cut, according to the report. The cut would amount to a projected loss of about $41 billion over the next 10 years for hospitals — and more than 194,000 jobs lost by 2021.
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