Valenti: County Hospital Could Lose Millions In Reimbursements

by Stephanie Valle

EL PASO — Thomason Hospital CEO Jim Valenti on Monday warnedof “storm clouds” brewing at the state and local level. If they burst,he said,they could wash away millions of dollars of funding and reimbursements.

Valenti told County Commissioners that the Disproportionate Share (DSH), or the Medicaid reimbursement, and the Underpayment Limit (UPL) could drop drastically over the next year.

Along with the state’s Medicaid reform, Valenti says the hospital could lose more than $30 million in reimbursements by next year. Valenti hinted, if the hospital lost that money, it would have to look into cutting funding for the charity program, or eliminating it altogether.

He also mentioned funding for the university medical center, the medical school, and even the Children’s Hospital could be in jeopardy. County Judge Anthony Cobos asked if this means the hospital district would be looking to increase taxes for next year, but Valenti said he did not even want to think or talk about that possibility until the budget planning sessions in late summer.

Valenti said the hospital has nearly $150 million in reserves, not including the $120 million bond issuances for renovations to the hospital and for the construction of the Children’s Hospital.

The Commissioners Court told Valenti it will look into writing a letter to President Bush to ask the federal government to not cut reimbursements.