Rep. Larry Walker and Rep. Jimmy Skipper will serve as Majority Leader and Majority Whip respectively. Rep. Calvin Smyre of Columbus will serve as the Majority Caucus Chairman. Two presentations were made at this meeting. Parker explained that managed care contracts were paying less than full price to the various hospitals. However, he noted that more intensive treatment created higher costs.
Hospitals have no places to shift the costs burden.
Further, he noted there is a diminishing amount of local financial support by communities for hospitals. Hospitals are unlike most other businesses as they are required to treat patients regardless of a person s ability to pay. In the mid 1980s, a law was passed changing the way in which hospitals were paid for obstetrical patients. At the time, payment was based on actual treatments rendered and changes were made to payments on a per case basis. In addition, House Bill 597, which was proposed in 1991, failed to pass.