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The average % increase in patient charges is proposed to average
13%/yr. The actual increases projected yearly are 14% 1982, 17% 1983,
.18% 1984, and 10% per year thereafter. This amounts to a 49%
increase in the next three years.
Why is this important? Congress just passed an $11.5 billion dollar
reduction bill for Medicare. There would be a cap of 10% increase
per year on Medicare recipients. Approximately half of Lowrance's
utilization is from Medicare and Medicaid. This would mean that our
revenues would be limited to an increase of 30% over the next 3 years,
but a 49% increase is projected. Who pays for the 19% lost revenues?
The original proposal projected 33,000 patient days by 1985, (a
figure the medical staff felt was unrealistic) and using that
figure projected a surplus of $549,220 for 1985• A revised estimate
lowered this to 30,553 patient days. (a more realistic figure) This
(2500)
revision would decrease hospital revenues in 1985 by $925,000.
This 1 would project as a $375,780 loss. However, the revised figures
show a surplus of $306,000.
The original plans called for no additional beds or new services.
The contingency fee for new equipment we feel is inadequate as a
hospital is not a hospital because it has a bed to lie in, but
because it has equipment and services to diagnose and treat illness.
_, Box 25 PAU-UU7