Teaching Hospitals Would Take Big Hit From Sequestration

If Congress is unable to reach a new budgetary deal and sequestration — or the across-the-board domestic program cuts mandated by the Budget Control Act — goes into effect, many hospitals and providers will be damaged through Medicare reductions.

According to a report from the Association of American Medical Colleges (pdf), teaching hospitals and medical schools will be hit especially hard, with some cuts being noticeable this year.

The AAMC said the average major teaching hospital will lose roughly $14 million in Medicare reimbursements, and thousands of jobs may be lost in the process. In addition, reductions to Medicare's graduate medical education "will limit teaching hospitals' and physicians' ability to care for all patients and train the next generation of physicians," according to the report.

Sequestration will also cut $1.5 billion from the National Institutes of Health, which funds research at most teaching hospitals and medical schools.

More Articles on Teaching Hospital Finances:

SUNY Upstate Hospital Requests $35M in Extra State Funding
Teaching Hospitals, Medical Schools Inject $587B Into U.S. Economy
Academic Hospital Finances Today: Q&A With Tufts Medical Center CFO C. Okey Agba

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