Balanced Budget Act Cuts Medicare Funding

The effect of the 1997 Balanced Budget Act has made a tremendous impact on hospitals across the country in drastically reducing the amount of Medicare reimbursements.

In Alabama, for example, 70 percent of the state's hospitals will operate at a deficit according to a study conducted by Deloitte Consulting for the Alabama Hospital Association.

Implemented over a five-year period ending in 2002, the Act is expected to cost U.S. hospitals a total of $50 billion. In an effort to continuously inform Congress about making revisions to the Act, the American Hospital Association (AHA) and private groups are actively writing letters and conducting postcard campaigns as to the damage caused by the Act.

Accounting professional working within healthcare who wish to help their employers and clients can find out more about a special email campaign to alert Congress.


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