Industry reacts to Medicare budget proposal

The healthcare industry reacted unhappily to the Bush administration budget proposal that would slash funding for hospitals and other healthcare providers by about $36 billion over the next five years. New York hospital officials said the changes come at a particularly difficult time when the industry is struggling to deal with an evolving marketplace and continuing financial challenges. Industry officials produced data which they said shows the cuts would cost area hospitals and long-term care facilities around $1.2 billion. Providers in New York also face the prospect of cuts on the state level proposed by Gov. George Pataki.

- see this article from The New York Times

PLUS: Officials at the Texas Medical Center said the proposals could have a serious long-term impact on the local economy and would probably lead to rate hikes for patients with insurance. Article

ALSO: CEO Dan Wolterman of Houston's Hermann Memorial Healthcare system thinks he has a better plan for saving the healthcare system. In a speech to the National Press Club, Wolterman proposed an innovative pilot project that would provide care for the uninsured and sharply limit insurance company influence. Article