AL HJR39

Urges U.S. Congress to fix the Medicare payment formula that creates inequitable reimbursement rates for Alabama hospitals compared to other states.

Identifies the wage adjustment factor in Medicare calculations as a primary cause of Alabama hospitals receiving significantly lower payments for identical procedures performed elsewhere.

Notes Alabama hospitals provide 81,500 direct jobs with $4.1 billion in annual payroll while operating with minimal profit margins—46 of 92 surveyed facilities reported negative margins, with the worst at negative 17 percent.

Reports that approximately 40 percent of Alabama patients are Medicare-covered, making the inequitable payment formula particularly damaging to hospital financial sustainability and contributing to recent rural hospital closures.

Expresses gratitude for previous efforts by the Alabama Congressional Delegation and calls for continued advocacy to establish an equitable Medicare payment formula for all hospitals.