Globe: For-profit hospitals in low-income communities want a cut of high fees paid to competitors #healthcarecosts

It is well documented that some Massachusetts hospitals –– read Partners — have the bargaining power to  extract higher pay rates from the feds and private payers.  Today’s Globe offers two takes on the ongoing battles.

This one is behind the paywall: 

images stewardA new coalition led by the state’s biggest health care company and its largest health care union will be pressing for higher payments to community and safety-net hospitals, saying patient care is threatened by a widening gulf between health care in rich and poor areas.

The group, calling itself the Massachusetts Healthcare Equality and Affordability League, will be formally launched Thursday by Steward Health Care System, a for-profit cluster of community hospitals, and Local 1199 of the Service Employees International Union, which represents more than 47,000 workers at sites that care for blue-collar and low-income patients.

And while it would not the odd to hear heated rhetoric from 1199, the story quote Steward’s chief executive, Ralph de la Torre, calling the disparity  “socioeconomic bias and bigotry.”

More on de la Torre in this Globe magazine profile. 

During his career, the 44-year-old heart surgeon-turned-hospital executive has shown himself to be a brilliant maestro, time and again using his relentlessness, charm, vision, and opportunism to turn an array of opponents into a symphony of supporters.

His most recent symphony was his most impressive work. As CEO of the Caritas Christi hospital network, he pushed through an $895 million deal late last year that took a group of community hospitals founded primarily by nuns to care for the poor and put them in the hands of the New York private equity giant Cerberus, a firm that takes its name from the mythical three-headed dog guarding the gates of Hades. To steer the deal through, he orchestrated an unlikely alliance of the Boston Archdiocese, Democratic elected officials, the Service Employees International Union (SEIU), and community organizers in some of the state’s poorest cities – all to support turning the struggling nonprofit hospital chain into a for-profit operation owned by a group of high-flying financiers

And an editorial calling for a correction to high rates driven by a formula designed for struggling rural hospitals. The state’s only technically rural hospitals is in tony Nantucket.

SINCE 2010, Massachusetts hospitals have benefited from an annual bonus in Medicare funding of at least $250 million. Congress is expected to vote to eliminate this windfall in early June, a blow to local hospitals, which may face layoffs and cuts in patient care as a result. But as the system is set up now, the state receives these funds due to a loophole in the national health reform law and at the expense of at least 40 other states. It’s time to find a more sustainable and equitable way to support top-notch medical care.

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