No Good Deed Goes Unpunished

Barnie Day


 

 

Medicaid Realities,

Tort Absurdities

Malpractice insurance and Medicaid reimbursements are pushing Virginia to the brink of a medical crisis.


 

Since 1965, Medicaid, a sort of joint venture between the federal and state governments, has been the largest provider of medical and health related services to America’s poorest people. That partnership has consequences for all of us. The state share of the cost is one of the major drivers of recent tax increases here in Virginia. But, really, that is the small end of the impact stick, especially when considered against the zooming increases in malpractice insurance costs. 

 

Consider highlights of a recent letter from T. Carter Melton, Jr., president of Rockingham Memorial Hospital in Harrisonburg:

 

“The central Shenandoah Valley is standing on the edge of a medical crisis.

 

“This will start as a Medicaid physician access crisis, but will quickly metastasize into serious second and third order consequences for our entire medical delivery system and the broader community.

 

It is being primarily precipitated by the squeeze between stagnant Medicaid reimbursement rates and the exploding cost of professional liability premiums.  Local OB/GYNs and pediatricians have simply been driven to the point of desperation, and they are saying 'No More!' Some will vote with their feet.

 

“Here is a current (as of May 17, 2004 ) status report.

 

  • The newest member of our OB community (who is in his third year here) has resigned from his practice and is leaving Virginia for another state. He has had no claims against him, and his tail coverage will reportedly be in excess of $96,000.

  • The second newest member of our OB community has informed his group that he will leave in the fall if their insurance renewal premium creates another reduction in income. Another OB in the same group who has been here 10 years may be on the way out of town soon.

  • A fourth OB is involved in practice dissolution, and will cease practice in September.

  • A fifth OB, with an outstanding record, was just served with suit papers. He recently explored the possibility of joining a larger OB practice here in town, but the larger group's carrier refused to insure him.

  • The largest OB group in town is about to limit the number of new Medicaid patients it will accept and is increasing their referral of high-risk patients (many of whom are Medicaid) out of town.

  • Our two largest Pediatric practices are closing to new Medicaid patients.

  • Pilgrim’s Pride poultry company just announced the closing of a major plant west of town, and approximately 1,300 workers will be laid off. We anticipate may of these displaced workers will lose their health insurance and flood onto the Medicaid rolls.

  • The Ethan Allen furniture plant in Bridgewater has announced it will close soon. I do not know about the workforce demographics of this plant, but it would be safe to assume that some of the 245 laid off workers will seek medical care through Medicaid.

  • RMH has between 1800-1900 deliveries per year and 30% are Medicaid. Our local OBs, our pediatricians, and our hospital not only serve the local Medicaid population but also that of Page County, since Page Memorial closed its OB service about 10 years ago.  If the worst occurs we will be down to 4.5OBs to deliver 1900 babies—a physical impossibility.

  • As this crisis quickly materializes, we anticipate that the uncovered Medicaid mothers in labor, and uncovered Medicaid children, will begin to show up in our Emergency Department (which was designed for 40,000 visits annually but now accommodates approximately 60,000).

“The state must take a proactive, leadership position in staving off this crisis. Medicaid reimbursement and liability/tort reform are beyond the ability of Rockingham Memorial to solve.”

 

This crisis is not confined to any one region of Virginia. Bill McKelway, writing Wednesday in the Richmond Times Dispatch, detailed similar anxieties state wide, pointing out that OB units have shut down in the Northern Neck, near Clifton Forge, in Norton, in Russell County, and at Buchanan General Hospital, in Grundy — all within the past eight months.

 

The situation has prompted Jane Woods, Virginia’s secretary of health and human services, to recommend that Gov. Mark R. Warner seek emergency authority to increase reimbursements to obstetricians who treat Medicaid patients, according to the Times Dispatch.

 

Indications from the Governor’s Office were that Warner “likely” won’t consider recommendations in Woods’ report until the fall, according to McKelway’s report.

 

But that may not be good enough. The best indications are that this one can’t wait.


-- July 12, 2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contact Information

 

Barnie Day

604 Braswell Drive
Meadows of Dan, VA
24120

 

E-mail: bkday@swva.net