WILL FERNIANY, PhD, CEO of UAB Health System in Birmingham
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“The most pressing concern for UAB, and most Alabama hospitals, is low reimbursement as benchmarked with the rest of the country. Case mix- and wage-adjusted, Alabama is always in the bottom three states in the U.S. for per-admission hospital reimbursement. This is because Alabama has the lowest Medicare Wage Index in the country, a very restrictive Medicaid program (one where the hospital component is 100 percent funded by hospital taxes), no expansion of Medicaid and a commercial insurance market with very few competitors. In addition, Alabama Medicaid is moving toward a managed care system.
Our response is both traditional, with continual reduction in expenses, as well as nontraditional, working with our state hospital association and other states to correct a grossly misaligned Medicare Wage Index system, lobbying in the state to expand Medicaid, and becoming the sponsor of the Medicaid managed care organization in our region.”
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