Report: Hospitals a major contributor to R.I. economy

PROVIDENCE – An April 2016 “Tracking Trends” report from the Hospital Association of Rhode Island indicates that, in 2014, Rhode Island hospitals had an economic impact in the state of more than $6.5 billion. Given the hospital industry’s contributions to the Ocean State, HARI urged state leaders to make the appropriate investments to secure the industry’s role in the state’s economy.

“We urge the General Assembly to approve a FY 17 budget that maximizes federal funds, appropriately funds the Hospital Incentive Program (a portion of the Delivery System Reform Incentive Pool that came from the work of the Reinventing Medicaid Working Group) and provides overdue adjustments to hospital Medicaid rates, Michael R. Souza, HARI president, told Providence Business News. These important investments, he said, help support the industry’s efforts to focus on innovative payment models that incentivize quality improvements.

Noting that HARI has introduced legislation to address the growing burden of patient financial liability – co-payments, deductibles and co-insurance – Souza added, “Our bill will eliminate co-payments and deductibles for mental health and substance abuse treatment and prohibit the use of co-insurance for all other insurance products. We urge passage of this important legislation as … a crucial step in addressing both the issue of patient financial liability and the mental health and substance abuse crisis facing our state.”

Hearings on HARI’s identical bills (2016-S 2501, introduced by state Sen. Josh Miller, D-Providence and Cranston, and 2016-H 7932, introduced by state Rep. Christopher Blazejewski, D-Providence) were held March 15 by the Senate Health and Human Services Committee and March 22 by the House Corporations Committee. Asked about expectations for enactment this year, a HARI spokesperson said, “We’re hopeful. We have support for the bills from the Rhode Island Coalition for Mental Health and Addiction Recovery, the Substance Abuse and Mental Health Leadership Council of Rhode Island and the Rhode Island Medical Society.”

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“Hospitals support one in 10 jobs in Rhode Island. We’re an economic engine that is providing Rhode Islanders with well-paying jobs and supporting local business,” Souza said in the statement. Of that annual $6.5 billion, nearly $1.8 billion represents wages paid to nearly 20,000 full-time health care professionals, whose indirect contributions to the state’s economy create an additional 20,000 jobs, the report noted.

Local hospitals’ annual expenditures of some $1.4 billion on goods and services needed to provide health care – including medical supplies, building electricity and food for patients – generate $2.8 billion for the local economy, HARI reported.

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