Oregon lawmakers have passed a cost-cutting bill aimed at trying to close the state’s budget gap that once topped $1.4 billion.
Related: Oregon Health Care Tax Looks More Likely
But Oregon’s hospitals say the lion's share of savings in Senate Bill 1067 — $190 million — comes from them.
The money would come from tying Oregon's public employee payments to a percentage of Medicare. Medicare payments can be 20 percent less than the cost of actual care, so hospital officials say pulling even more money from those payments would hurt them.
The cost trimming bill would save the state around $270 million every two years, according to the Oregonian.
Andy Davidson, president of the Oregon Association of Hospitals and Health Systems, is not happy.
“This could be an absolute disaster in another year or two," Davidson said. "There will be negative consequences as a result of what’s moving.”
Davidson did not say what those consequences might be. But he said his organization plans to look for a reduction in the $190 million dollar price tag next session.
Over the last few years, Oregon’s hospitals have not fought new taxes aimed at keeping the Oregon Health Plan working.