California Hospital Association: 2012 Looks Bleak for State Hospitals

Inadequate reimbursements for government-sponsored health programs, an aging population, a widening proportion of low-income residents and high-income earners and "substantial" state budget complications are some of the biggest reasons California hospitals will be facing significant downward pressures this year, according to a report from the California Hospital Association (pdf).

The CHA also forecasts that uncompensated care will continue to rise for state hospitals as the government reduces Medicare and Medicaid payments and commercial payors transfer more costs to patients. California hospital emergency departments and trauma centers are also expected to be increasingly overused, which the CHA said is "compounded by an acute shortage of on-call specialist physicians."

Other components of the healthcare delivery system that the CHA said hospitals need to be prepared for include the accelerating adoption of health information technology, aggressive organizing from labor unions and shortages of primary care physicians.

The CHA concluded it will work to assist hospitals and hospital partners as they restructure themselves into accountable care models, and it will work to protect current reimbursement levels.

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