Proposed federal cuts could cost OMC $34.9 million over 7 years

Current proposals to trim the federal budget could have a significant effect on Ozarks Medical Center in West Plains, according to the hospital's recently released statement, based on data from the Missouri Hospital Association.
The data identifies the fiscal impact of the options being considered by the congressional "super committee" as well as the mandated 2 percent cut in federal spending if the committee cannot reach an agreement.
The Budget Control Act of 2011 requires an across-the-board reduction in Medicare payments to hospitals unless the super committee can find $1.2 trillion in cuts from the federal budget. For OMC, this would result in an immediate Medicare payment cut of $632,000 and reductions of $6.9 million throughout a decade.
But the options before the super committee could result in even more drastic cuts, according to the OMC statement. Since the 1990s, Missouri has used provider taxes as a significant source of funds for its Medicaid program. President Obama's proposal significantly limits the use of provider tax systems. If his proposal is adopted, OMC would lose $34.9 million in federal funds throughout the proposed seven-year phase-down time line.
Statewide, the provider tax limits would result in $5.6 billion in reduced federal funding for Medicaid throughout the same period. These cuts also could be accompanied by numerous additional reductions in Medicare payments. "These proposed cuts would have devastating consequences for Ozarks Medical Center and all Missouri hospitals," said David Zechman, OMC president and CEO.
With 1,251 employees, OMC is the area's largest employer, providing an estimated $68 million in payroll and benefits in 2011.