Future Job Losses At Rural Hospitals

Floor Speech

Mr. THOMPSON of Pennsylvania. Mr. Speaker, I rise today to address the issue of job loss at rural hospitals if the current health proposal were to become law. The Democrats' public plan assumes reimbursement rates based on Medicare.

In the July letter from the Blue Dog Coalition to Speaker Pelosi, the coalition reported that Medicare reimbursement pays, on average, 20-30 percent lower than private plans. Actual costs are made up through private insurance reimbursement, which will be gone if the Democratic plan plays out. This will have a severe negative impact on rural hospitals, and it will leave us asking: Where are the jobs?

Many providers suffer financial losses as a result of treating Medicare patients. The lower rates make it more difficult for rural providers, who serve higher percentages of elderly and low-income patients. A new public plan with rates similar to Medicare's will create a financial result that will be unsustainable for even the Nation's most efficient, high-quality providers. The result is a loss of good jobs in rural America.

During this time of economic downturn, we need to be focused on the retention of existing jobs and on encouraging and not discouraging our rural hospitals.

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