HJR15 Summary

• Urges the United States Congress to fix inequities in the Medicare payment formula that disadvantage Alabama hospitals, specifically the wage variation factor used in calculations.

• Alabama hospitals provide 81,500 direct jobs with a $4.2 billion annual payroll and have the lowest average cost per hospital stay in the country yet receive the lowest average Medicare payments.

• Recent hospital survey data shows an average hospital margin of 1 percent statewide, dropping to negative 1.4 percent excluding the top eight hospitals, with 44 of 92 surveyed facilities reporting negative margins and three rural hospitals having closed.

• Approximately 40 percent of Alabama's patients are covered by Medicare, making the inequitable payment formula particularly damaging to hospital financial viability and access to healthcare in the state.

• Expresses gratitude for previous Congressional Delegation leadership efforts to reform the Medicare payment formula and urges continued efforts to ensure equitable payments for all hospitals.