Hospitals Agree to $155B in Future Savings

Will accept lower payments for Medicaid, Medicare

By Kevin Spak, Newser Staff

Posted Jul 7, 2009 7:25 AM CDT

(Newser) – The nation’s hospitals have struck a deal with White House and Senate negotiators that will save the government $155 billion over 10 years, the Washington Post reports. The hospitals will accept lower-than-expected Medicare and Medicaid payments, and a gradual reduction in the amount paid to help care for the uninsured. The government, meanwhile, has promised that a public insurance plan would pay better-than-Medicare rates.

“Getting health care reform is absolutely critical,” says one hospital negotiator. “This is our attempt to act in good faith.” President Obama gave them good reason to do so last month, when he said he’d identified $200 billion in potential hospital reductions. “There was no way we could tolerate $200 billion,” one industry executive says. Because Obama is out of the country, Joe Biden is expected to announce the deal tomorrow.

In this April 2, 2009 file photo, Senate Finance Committee Chairman Max Baucus, left, and the committee's ranking Republican Chuck Grassley talk on Capitol Hill. (AP Photo/Susan Walsh, FILE)

Hospitals have agreed to give up some dough to pay for universal coverage. (Shutterstock)

Joseph Biden reacts, during a meeting with Iraqi Prime Minister Nouri al-Maliki, not seen, in Baghdad, Iraq, July 3, 2009. (AP Photo/ Khalid Mohammed, Pool)

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Hospitals Agree to $155B in Future Savings

Will accept lower payments for Medicaid, Medicare

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OTHER STORIES ON OUR RADAR

health care • Joe Biden • health care costs • hospitals • Senate Finance Committee • American Medical Association • health care reform • Obama administration • American Hospital Association

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

On Way Out, Medicare Boss Bashes 'Extreme' Waste

Donald Berwick says 20-30% of health care spending helps no one

Appeals Court: Health Reform Constitutional

White House chalks up third US appeals court victory

States Want OK to Cut Medicaid—Without Penalty

Governors battle Washington over measure in health reform law

Doctors Need to Work Weekends

Peter Orszag: No one wants to work Saturdays, but we need them to

Democrats: Health Vote Next Week

Pelosi 'delighted' Obama will be present for 'historic' passage

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