DeGette Secures Increase In Funding For Safety-net Hospitals

WASHINGTON – As Congress prepares to vote on H.R. 1, the AmericanRecovery and Reinvestment Act, U.S. Rep. Diana DeGette (D-CO), ViceChair of the Committee on Energy and Commerce Committee, is pleasedthat the increase in funding allocations she secured forDisproportionate Share Hospitals (DSH) is included in the finalcompromise package. The DSH program provides the predominant fundingmechanism for states to directly reimburse care provided to theuninsured.

"As the economy worsens and the number of jobless claims increases,hospitals are being confronted with a growing number of individualswalking through their doors who have lost their health insurance," saidDeGette. "The uninsured often rely on hospitals, such as Denver Health,to provide care; however, hospitals are not always fully reimbursed forthis care. With the current recession expected to last a year or more,the increase in uncompensated care will quickly be unsustainable.Hospitals cannot continue to absorb these increasing costs and keeptheir doors open."

The American Recovery and Reinvestment Act

Temporary Increase in Disproportionate Share Hospitals (DSH) Payments [$500 million]

§ Increases states' FY2009 annual DSH allotments by 2.5%

§ Increases states' FY 2010 by 2.5% above FY2009 DSH allotment (with the adjustment)

§ After FY2010, states' annual DSH allotments would return to 100%of the annual DSH allotments as determined under current law

"Many individuals have lost their jobs and their health insuranceduring this economic crisis," said Dr. Patricia Gabow, CEO of DenverHealth, a premiere safety-net hospital in the Rocky Mountain Westregion. "They are turning to safety-net hospitals for their health carein great numbers. At Denver Health, our uncompensated care hasincreased from $275 million in 2007 to over $310 million in 2008.Disproportionate Share Hospital funding is the main funding stream thathelps us cover some of the cost of this care. We are grateful toRepresentative DeGette for once again being a champion for vulnerablepatients and advocating for an increase in this funding stream in theEconomic Recovery package."

The House is set to vote on the full package tomorrow, Friday, February 13th.