Hospitals: Protect our payments in deficit deal

A major hospital group warned lawmakers Thursday that its members "cannot absorb" further cuts that could come as part of a deficit-reduction deal.

The Federation of American Hospitals (FAH), which represents for-profit hospitals, is the latest stakeholder group to raise concerns about possible cuts.

The healthcare world faces the expiration of Medicare's latest doc fix and the sequester, which would slash $11 billion as a result of an across-the-board 2 percent cut to Medicare providers.

Like hospitals, doctors and nursing homes have urged lawmakers to avoid the so-called "fiscal cliff" of automatic spending cuts and tax increases set to hit in January, and preserve their payments in any final deal.

"Hospitals need your help and we ask for your support during the coming days and week as Congress considers policies addressing the fiscal cliff," wrote FAH President Chip Kahn. "The choices Congress makes ... either will help stabilize, or further weaken, hospitals."

The letter cited a recent study that projects as many as 766,000 job losses as a result of Medicare sequestration.

President Obama is scheduled to meet with lawmakers Friday to open negotiations.

---