Fri, Nov 20 2009

Published: November 06, 2009 03:41 am    PrintThis  

Editorial: The pitfalls of state-run health care

Supposedly, the rest of the country should look at Massachusetts to witness the nirvana of universal health care.

Perhaps they shouldn't look too closely.

Massachusetts has had universal health care since 2006, thanks to former Republican Gov. Mitt Romney, the late U.S. Sen. Ted Kennedy and the Democratic Legislature. At one level, it looks like a smashing success — according to state officials, nearly 98 percent of the state's residents have coverage of some kind.

But, it is costing more than anyone predicted it would. Since 2006, total health care spending in the state has jumped 28 percent. Insurance premiums have been increasing 8-10 percent a year, nearly double the national average.

And while government has always underpaid for Medicaid and Medicare services, letting private insurance premiums make up the difference, it has recently cut reimbursements to hospitals even more. So, some cracks are showing.

The Merrimack Valley Hospital in Haverhill is joining five other Massachusetts health care facilities in threatening to sue the state to force it to pay them more.

What they have in common is that two-thirds or more of their patients are covered by Medicare, Medicaid or other government-funded insurance, like that provided through the Commonwealth Care. And, as Merrimack Valley CEO Michael Collins puts it, "There is a recognition that Medicare and Medicaid do not pay their fair share of costs."

He said his hospital's shortfalls from those patients were $2.2 million in fiscal year 2007, $1.1 million in 2008 and $1 million in 2009.

How has the hospital coped? Collins said since he became CEO two and a half years ago, he has presided over two staff reductions.

And that exposes another crack. At the Statehouse this past week there was a contentious hearing on proposed bills that would put state government in charge of setting nurse staffing levels.

The Senate bill was filed by Sen. Marc Pacheco, D-Taunton, famous for the so-called Pacheco Law, which inflates the cost of every public construction project in the state. Clearly he is not a model of fiscal restraint. Now, he is out to inflate the cost of health care even beyond its already unaffordable levels.

Hospital leaders are fighting it, of course. But what do they expect? Government long ago decided what it would pay for medical services. Are they surprised that soon it may also tell them what they have to pay their employees, and how many they have to hire and keep on a shift?

This is government-run health care. And it is not looking much like nirvana.

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