December 5, 2012 -- Oregon healthcare leaders support the sustainable 2013-15 budget package for the Oregon Health Plan (OHP) as proposed by Governor Kitzhaber.
The key element in the budget package is achieving efficiencies in the health care delivery system totaling around $470 million in the next biennium and $11 billion over 10 years. Revenue for the package comes from extension of the hospital provider tax, as well as from the existing tobacco tax, Master Tobacco Settlement and General Fund. The hospital provider tax expires next September.
The Oregon Health Leadership Council gave its support to the package following more than a year of collaborative discussions with Governor Kitzhaber’s staff.
“This is a balanced, sustainable solution for the Oregon Health Plan that will keep health transformation on track in Oregon,” says Greg Van Pelt, who chairs OHLC’s Medicaid Sustainability Committee. “Our members are eager to work with Oregon lawmakers and encourage them to adopt this budget package as early as possible in the 2013 session.”
“Early approval of the hospital tax extension will enable healthcare providers to focus on this critical stage of implementing Coordinated Care Organizations around the state,” according to Ken Provencher, OHLC co-chair. “CCOs are the linchpin of the state’s strategy for permanently containing health care costs.”
A portion of the new hospital provider tax will match federal Medicaid funds and go into a Hospital Transformation and Performance Pool that will assist Oregon’s community hospitals and their staffs in transitioning to delivery models intended to reduce overall hospital utilization, while improving patient outcomes.
“This quality performance incentive pool will promote high-quality, low-cost care as hospitals transition to a Medicaid delivery model that will see fewer patients in their facilities,” said Provencher. “The funds will be distributed based on the ability of hospitals to achieve specific quality and outcome measures intended to improve patient care and lower costs to CCOs.”
About OHLC
OHLC was formed in 2008 at the request of four major Oregon business groups (OBC, AOI, OBA and the Coalition of Health Care Purchasers) to pursue actions to slow increases in employer health care costs and premiums. Made up of 30 members, OHLC includes major health systems/hospitals, major medical groups, 12 local and national health plans and the OMA and OAHHS. OHLC reports quarterly to its business community through the Business Roundtable. Progress reports are sent to legislators and posted on the website. OHLC views sustainable OHP funding as essential to health care cost containment.
