According to the report, large hospitals affiliated with medical schools in urban areas tend to receive a higher share of the $133 billion available for Medicare reimbursements, which are part of the “rewards” for maintaining high standards and training new physicians. Smaller, rural hospitals — such as North County Health Services in Bernidji, Minn., which was cited in the report — receive lower reimbursements that oftentimes do not cover the cost of treating patients.
Republicans and Democrats from rural areas note that the new healthcare reform bill upholds the same standards that benefit urban hospitals and would like to see more equal distribution to rural hospitals.
Lawmakers from more urban areas say that teaching hospitals offer more advanced care and should be compensated for doing so. For some states, like Massachusetts, where one half of the revenue at teaching hospitals comes from Medicare and Medicaid recipients, leveling out reimbursements could have a drastic effect, according to the report.
Read the Globe’s report about the rural-urban hospital Medicare reimbursement debate.
