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Saturday, June 5, 2004
State's health plan is panned
Copyright © 2004 Blethen Maine Newspapers Inc. | ||
AUGUSTA Hospital officials used a public hearing Friday to bash state recommendations to save money by slowing medical expansion and establishing spending targets for the health care industry. Frank McGinty, executive vice president and treasurer of the MaineHealth system, said Maine's hospitals have the demanding task of providing some of the best care in the country while treating a poorer, older and - ultimately - more costly population than other states. "Yes, we do spend more per person than the national average," said McGinty, whose organization includes the state's largest hospital, Maine Medical Center in Portland. "But," he added, "it is also true that we spend less than the average for the New England region." The cost-containment measures proposed by Gov. John Baldacci's administration are the most controversial part of a state health plan due to take effect this summer. The administration cites hospitals as the biggest reason that Mainers will spend $6.9 billion on health care this year, making them a primary target for employers and health care consumers worried about keeping up with rising costs. David Brenerman supported the health plan on behalf of his employer UnumProvident, a national corporation based in Portland that provides disability insurance but buys health plans like other companies. "Our health care costs are significantly higher here than in Glendale, Calif. or Worcester, Mass.," said Brenerman, who also represents the employer group, Maine Health Purchasing Collaborative of which UnumProvident is a member. The state health plan, which is effective for a year and also addresses the quality and accessibility of health care, is part of the Dirigo Health reform law passed by the Legislature a year ago. The law also calls for a limit on new equipment and facilities for hospitals and doctor's offices. The governor's Office of Health Policy and Finance will announce a proposed cap later this month, and hold a public hearing June 29. But the measure won't go to the Legislature until after the next session begins in January. For now, hospitals and doctors will challenge the state health plan's proposed criteria to the commissioner of the Department of Human Services, who grants certificates of need for capital expenditures. The plan favors, for example, projects that minimize environmental impact and use "green energy," and are approved by the Maine Quality Forum, a watchdog group overseeing the quality of health care. "The Maine Quality Forum should have a voice . . . but it should not have the veto authority" implied by the state health plan, said Andy MacLean, general counsel for the 2,600-member Maine Medical Association. In some cases, groups at Friday's hearing wanted the state health plan to go further. The Maine Association of Health Plans, which represents private health insurers in Maine, said the state could reduce or stop state payments to hospitals and doctor's offices that fail to reduce costs or improve services with expansion projects. The American Cancer Society of Maine, meanwhile, suggested that health care providers contribute 1 percent of the cost of an expansion project to a public health program. At the hearing, hospitals also criticized "state health expenditure targets" mentioned in the health plan. Although the targets are supposed to be a planning tool for regulators, hospitals worry that they will be used to create a statewide limit. "Global budgets ignore the need for critical investment in infrastructure, the pace of medical developments and the increasing demands of health care services," said David Winslow, vice president of the 38-member Maine Hospital Association. Hospitals' concerns about a statewide budget dates back to last year when a global budget was proposed but thrown out in the face of a hospital outcry. Instead, hospitals were asked to voluntarily cap cost increases and operating margins. Outside of cost issues, hospital executives, said Friday they generally approved of a state health plan and its objective to make Maine the healthiest state in the country. Trish Riley, director of the governor's health policy office, hoped the state and hospitals could find common ground. "They're a big part of the health care system, they're important, we want them to be strong," Riley said. "They're also expensive and we have to balance all those things." Written comment on the state health plan must be received by the governor's health policy office - 15 State House Station, Augusta, ME 04333 - by Tuesday. An advisory council created to counsel the office about the health plan will recommend revisions June 15. A final version issued by the governor's office should take effect by July 1. The governor's office will then start work on a biennial state health plan that will be more detailed and draw more from the public's input, Riley said.
Josie Huang can be contacted at 791-6364 or at:
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