The real problem for the hospitals is that they are on thin margins and the real problem or issue is the day by day increasing the cost of the health care.
The Cleveland Clinic CEO Toby Cosgrove told CNBC that the Senate’s Affordable Act bill is predictable to leave millions uninsured if it passed. Because this bill will plummet some of the hospitals into deep financial concern.
He further said that if endorsed, the Senate’s Better Care Reconciliation Act could leave 15 million more people uninsured just in the next year. And if it continuous than in the year 2026, 22 million people will without health insurance relative to the current law, and according to the Congressional Budget Office. Because hospitals are already running on the low margins though most of their patients have health insurance, he said. It would be a burden on the hospital to serving those people who are uninsured and also not able to pay from their own pocket.
Cosgrove said on Wednesday on CNBC’s “Squawk Box” that “If you have more patients coming in that are not paid, you’re going to have hospitals that are in very deep financial trouble, and this is particularly true of rural hospitals and safety net hospitals, which are very dependent on Medicare and Medicaid for their returns.”
He also said that the Congress is headed in the wrong direction, it is focusing on the payment reform and the need is that they should focus on than health-care reform. The “root cause” is the rising cost of the health care.
Health epidemics two price drivers are mentioned by the Cosgrove, such as obesity, opioid abuse, and smoking plus the rising cost of the drugs. He also told that last year, Cleveland Clinic’s cost increased 19 percent.
“I think if we came together and deal with the root cause there’d be plenty of money to go around to look after people, but if we don’t deal with it now, we’re going to have the same problem going 10 years from now.” Said by Cosgrove and this is the solution by him also.
He said he shared them with the people in the White House but not with the President Donald Trump.