The Maryland Health Services Cost Review Commission has approved a 1.77 percent increase in the rates hospitals can charge their patients.
The Commission voted 6-0 on the increase at the state’s 47 hospitals. The increase will go into effect July 1, 2009.
MHSCRC executive director Robert Murray said the 1.77 percent increase is “a middle ground,” and would bring $230 million in new revenue to state hospitals.
The Commission’s vote was disappointing to Maryland hospital advocates.
Hospitals had lobbied for a 3.8 percent rate increase, while health insurers preferred a 0.8 percent increase. At an April meeting, the MHSCRC recommended a 1.2 percent increase. Last year, the commission approved a 4.7 percent increase.
Carmela Coyle, president of the Maryland Hospital Association, said she was “extremely disappointed” by the Commission’s action. The MHA claims Maryland hospitals will be faced with expenses in FY 2010 which exceed the update set by the commission.
“Hospitals likely now will have to lay off caregivers,” Coyle said. “Hospitals are already under financial stress. Today’s action will present even more challenges. It will push some hospitals to the edge of financial stability. And, it will force still others to reduce access to care in some areas in order to remain financially solvent.”