CAMC to Get $2.3 Million in Extra Funds
Charleston Area Medical Center has been experiencing financial losses at General Hospital’s trauma center and intensive care units for newborns and children at Women and Children’s Hospital.
But CAMC expects to collect an extra $2.3 million later this year to help offset the losses.
The state Legislature pledged to distribute additional money as part of a budget bill that helps CAMC and three other West Virginia “safety net” hospitals, which provide care to large numbers of low- income Medicaid patients. State lawmakers increased the funding by about 50 percent over last year.
The federal government will kick in $3 for every dollar the state distributes.
Last year, CAMC hospitals lost $14 million in its specialized- care units for Medicaid patients.
“This will make up about half of the loss coming from safety net patients,” said Robert Whitler, CAMC’s vice president of government and community affairs, after a board of trustees meeting in Charleston Wednesday.
“We’ll still have a loss, but less of a loss. This is a huge step forward.”
The state’s other teaching hospitals – Cabell-Huntington Hospital, St. Mary’s Hospital in Huntington and West Virginia University Hospitals – also will receive the extra funding in July.
Gov. Joe Manchin is expected to sign the budget bill, which provides the additional funding.
Whitler said West Virginia is one of only a few states that doesn’t compensate hospitals for all financial losses brought on by Medicaid patients in trauma, neonatal and pediatric intensive care units.
Statewide, the teaching hospitals lost more than $29 million last year providing care for those patients.
In 2006, CAMC received about $5.1 million from the state and federal government to help offset losses for Medicaid patients. This year, CAMC hospitals expect to collect $7.4 million.
Also Wednesday, CAMC’s chief financial officer said the hospital system was in danger of losing up to $2 million because of a proposed federal change that would reduce the discount on prescription drugs that CAMC provides at its pharmacy for employees.
Only a handful of hospitals across the country qualify for the prescription drug discount, said CAMC vice president Larry Hudson.
“With the change in rules, we couldn’t qualify [for the discount],” Hudson said. “It’s a lot of money.
“It’s crucial for us.”
About 90 percent of CAMC employee prescriptions are filled at the in-house pharmacy. CAMC has more than 5,000 employees.
CAMC CEO David Ramsey has written a letter to federal Office of Pharmacy Affairs, asking that the discount not be revoked.
Hospital officials said CAMC would absorb the $2 million loss and not increase prices of prescription drugs for employees if the federal government makes the change.
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