Legislators are considering a bill in the Washington State Legislature’s current special session that would, if approved, have devastating financial impacts on St. Elizabeth Hospital in Enumclaw and other critical access facilities.

The Critical Access Hospital Program, created by the 1997 federal Balanced Budget Act, is a safety-net device to assure Medicare and Medicaid beneficiaries living in remote areas access to essential health care services. Enumclaw Regional Hospital earned critical access status from the state in November 2004. That designation then transferred to St. Elizabeth Hospital when it replaced Enumclaw Regional in February 2011.

Critical access facilities follow special federal and state guidelines. They are limited to 25 inpatient beds, for example, and adhere to Medicaid and Medicare payment structures that are financial lifelines. Approximately 50 percent of our hospital’s reimbursement is for services provided to patients enrolled in either Medicaid or Medicare.

House Bill 2130 that state legislators are discussing would eliminate cost-based reimbursement for all 38 critical access facilities in Washington, resulting in a 50 percent reduction in Medicaid payments. This would mean a staggering cut of $85 million statewide. That total would be on top of previous state cuts that are already putting severe financial pressure on hospitals and other health care providers.

At St. Elizabeth, we would experience a significant decline of at least $2.2 million in Medicaid payments if House Bill 2130 were approved. A cut of this magnitude would greatly hinder our ability to meet the needs of our patients and our community. We would be forced to limit or possibly eliminate some programs that make St. Elizabeth the special hospital that it is. Our community was fortunate that, through our affiliation with the Franciscan Health System, we were able to build this state-of-the-art hospital. It would be a major setback for our community if we had to scale down some programs and services because of state funding cuts.

Cuts proposed by House Bill 2130 would also have a negative impact on our fragile local economy. St. Elizabeth Hospital is a major employer in Enumclaw. We purchase many goods and services locally. Having a high-quality hospital helps attract businesses and residents to our community.

Across the state and on the Enumclaw Plateau, individuals and communities benefit from a strong network of urban and rural hospitals, like St. Elizabeth, working together to ensure appropriate care for every patient. House Bill 2130 would decimate this network. If the proposed legislation is not rejected during the Legislature’s special session, then it will likely be on the agenda when the Legislature reconvenes for its regular session in January.

Gov. Gregoire and lawmakers are working hard to find solutions to the state government’s budget crisis. Their task is daunting. However, undermining critical access hospitals is not the answer. House Bill 2130 would have consequences far beyond rural communities that rely on critical access hospitals for lifesaving care and essential medical services. Please join me in urging state legislators to defeat House Bill 2130.

About the writer: Dennis Popp is president of St. Elizabeth Hospital in Enumclaw.