Hospice cuts go into effect

MONTROSE—A federal regulation that will cut hospice Medicare reimbursement rates by approximately $2.2 billion around the nation went into effect Oct. 1, according to the National Hospice and Palliative Care Organization.

Christy Whitney, CEO of Grand Junction-based Hospice & Palliative Care of Western Colorado, said this will mean about a $1.6 million reduction in funds for her organization over the next three years. “The first year we will probably see a 2 percent cut, about $460,000,” she said.

The cuts have significant implications, especially with the economic downturn, Whitney said. “Where I see it really affecting us and our employees is market pay—raises for nurses and medical personnel. The challenge is keeping competitive and balancing our budget with less money than usual.

“We don’t envision an impact on our patients,” she continued. “Our patients are our primary focus.”

Whitney said her organization may use more volunteers in its bereavement program. She also anticipates not being able to expand their palliative care program, which serves people who don’t meet the six-month criteria for hospice.

The CEO called the cuts “very serious.” They will require “more diligence, more active fundraising, and doing things we do even better and more successfully,” she said.

Faced with a Medicare reimbursement rate cut about seven years ago, Whitney created Heirlooms for Hospice, an upscale resale shop that benefits hospice.

“Heirlooms is a critical source of revenue,” Whitney said. “Last year the three stores raised about $250,000. We hope that will continue.”

Money raised by the Montrose Heirlooms, which was renovated this summer, benefits hospice programs here.

Whitney said plans for a residential Montrose hospice facility are still under way. A capital campaign for the Montrose facility is separate from the campaign for the new Mesa County facility, which opened this fall.

NHPCO has filed a lawsuit in U.S. District Court for the District of Columbia to stop the cuts. A decision on the suit is expected by November, Whitney said. In addition, a bill to keep the the hospice Medicare cuts from going into effect for one year was introduced in the U.S. Senate and House last month. Called the Medicare Hospice Protection Act of 2008 (H.R. 6873 and S. 3484), it is working its way through Congress. U.S. Sen. Ken Salazar (D-Colo.) is a co-sponsor of the bipartisan Senate bill.

According to NHPCO, more than 1.3 million dying Americans received care from the nation’s hospice providers last year. An independent study by Duke University found that hospice care saved Medicare an average of $2,300 per patient. In addition, a recent MedPAC study noted that hospice profit margins are low, around 3.5 percent.

Hospice & Palliative Care of Western Colorado served about 1,200 patients last year, Whitney said. There is a misconception that hospice care is expensive for families, and that people save money by waiting until the last minute to utilize services, she said. However, most hospice care is completely covered by Medicare, Medicaid or private insurance.

Persons wanting more information on hospice can call Whitney at 970-257-2360.