Senator Renee Unterman on the Economics of Rural Healthcare in Georgia

Here is the full text of the speech Senator Renee Unterman gave on the floor of the Senate:

Welcome back, and especially welcome to the Freshman Class of the Senate.

This week we have listened to some phenomenal speeches and words of wisdom from the Governor and our own President of the Senate. It’s been a great Inauguration week. The messages that I have heard are about Georgia’s brighter future- about two different paths to follow in leadership. The road less travelled is a little bumpy with indecision, but more importantly, the other path is one of success, vision, making bold decisions- the path leading to our status as an economic driver, NOT a follower.

I rise today to talk briefly about our number one issue and topic TRANSPORTATION as well as what I consider equally important, the healthcare of Georgians. I understand transportation: unquestionably, it is the number one issue in my district and on the minds of my constituents in Gwinnett County.

As a former Mayor of Loganville, it was brought to my attention the documentation that the residents of Loganville have one of the longest average commute times. The surrounding towns and cities are not much better off unfortunately. I have received letters of intent to leave the region and migrate out to places such as Nashville, Charlotte and so forth as frustration builds. As former Mayor of the City of Loganville, I believe it was ranked as the area with the most costly commute.

The Governor is correct, and I quote, “Our only option NOT to DO, Is to DO NOTHING.” I agree 110%.

Transportation and the issues of healthcare for Georgians are INTRINSICALLY linked, just as education is also linked. They are all obviously relevant to each other in the discussion of the appropriation budget.

I don’t have the time to discuss healthcare economics. But my MAIN message is this: the old adage-

You can’t beg or borrow from Peter to pay Paul. Money has to be supplanted not subtracted from one agency to beef up another.

Specifically, I want to leave with you with a few details:

One of the more predominate issues in Georgia’s healthcare crisis is Access. In December, we thought the provider’s reimbursement cuts as of December 31, 2014 were 70 million dollars for family practitioners servicing Medicaid patients. Now I’m told it is approximately 29 Million dollars for 2015 and 58 Million dollars in 2016. Of course, we have FMAP inclusions but it will still be a costly gap to fill in our budget allowing families the ability to see a primary care physician. The rug is now being pulled out by the Federal government, and the state has to step up to the plate, much like the Federal government withdrawing money for transportation. At about the same time, the rug will be gone completely.

It’s obviously a budgetary conundrum.

Secondly, we are all cognizant of the rural hospital crisis. Five Hospitals have closed since 2012:

Stewart Webster

Calhoun Memorial

Charlton Memorial , which I visited this summer in Folkston, GA and where I spent the afternoon

Lower Oconee

Emory Adventist (suburban) in Cobb County

According to GHA, 15-20 rural hospitals are on the brink of crisis. Eleven urban/suburban hospitals are at the risk closing their doors and reducing access. It is not just rural hospitals in crisis, but also, it is all Georgia hospitals.

One of the main reasons for the Hospital fiscal instability is Medicare cuts to GA hospitals, just as the Federal government has cut Medicare providers

Please consider the following: Medicare Cuts to Georgia’s Hospitals (FY ‘16/’17)

• Obamacare Cuts (-$727 Million)

• 2% Sequestration Medicare Cuts (-$193 Million)

• Coding Adjustment Reductions (-$107 Million)

• Bad Debt Reductions (-$18 Million)

Total Cuts: $1.045 BILLION (10% cuts to Georgia’s Hospitals in next two years…just on Medicare payments!!)

In closing, I ask when deciding the solutions to these dilemmas and the fate of all these issues please recognize the domino effect. As an elected official, you must consider the overall picture, not just address or focus on one issue.

Most of all –we cannot borrow from Peter to pay Paul. I look forward to some great discussions and look forward to working with our new Senators who have the daunting task of understanding health care economics. Feel free to ask assistance with the Senate HHS.