These burdensome regulatory rules place a financial strain on providers, who are already reeling from the drastic provider cuts included in the 1997 Balanced Budget Act. And as I said earlier, in addition to Medicare we face laws, regulations and instructions from some 29 other regulatory agencies. Mr. Chairman, we all agree the health care industry should be regulated. However, the strain of 29 or more organizations issuing thousands and thousands of pages of rules, instructions and laws is hurting the health of our nation's hospitals. There is no coordination among agencies that regulate providers.
Rules appear to be issued in a vacuum with no regard to the fiscal consequences of compliance.
Though most of the examples I have given today come from Northwestern Memorial's experience, I speak for hospitals across the country as these examples apply to hospitals whether large or small. The AHA is ready and willing to continue our work with HCFA and other agencies to improve the way rules and regulations are promulgated and implemented. We know that the size and complexity of the Medicare program is a challenge. We pledge to do all we can to help make the regulatory system work better not just for hospitals and health systems, but also for the patients and communities we serve. I thank the Committee again for the opportunity to describe the difficulties hospitals are facing.