As many of you know, SHARE represents members at UMass Memorial Health, with many working at UMass Chan University campus, sharing space with UMass Chan SHARE members.
SHARE is working to figure out how to navigate the NIH funding cuts, while supporting our members at UMass Chan and negotiating a new contract during uncertain times for research and the medical field. The federal government has slashed its budget for research grants, and there are reportedly plans to reduce Medicaid spending. SHARE continues to analyze how this will affect our members at both UMass Chan, and the hospital. Below is a post taken from the SHARE blog at our SHARE UMass Memorial site regarding potential Medicaid Cuts.
Big Changes Likely for Healthcare
As a safety-net hospital, a sizable portion of the care provided at UMass Memorial relies on government funding. As you may know from recent news reports, what Medicaid will look like in the near future is very much in question, and currently at the center of the federal budget debate in Washington D.C.
WHERE ARE THINGS NOW
As of this writing, Medicaid cuts look almost certain and substantial, with Politico reporting, “After a 26-and-a-half-hour markup, Republicans on Wednesday advanced the health care section of the GOP’s sweeping tax bill that would slash Medicaid spending by hundreds of billions of dollars.”
Since the Republicans control Congress -- Democrats are united in opposing cuts to Medicaid (as reported in Politico) -- it’s all about the debate among Republicans. Some Republicans are taking a stand against the cuts, and some are arguing that the cuts do not go far enough. “To say we have a gulf is an understatement,” said Rep. Chip Roy, R-Texas, a leader of the conservative wing, as reported by the Associated Press.
What Would Be the Overall Impact of Medicaid Cuts?
There are a lot of unknowns, of course. Governor Maura Healey was earlier quoted by NBC Boston as saying, "No state in the country can make up for the kind of cuts that are being talked about.” NBC reports that “The legislation could lead to 8.6 million people losing Medicaid coverage.”
Medicaid Cuts Potentially Compound the Pressures on Healthcare
Other recent changes to Federal healthcare policy — most notably tariffs and significant cuts to the NIH and the FDA — have already placed strain on academic medical centers, with direct effects on our sister SHARE union at UMass Chan and our sister union at Harvard University, HUCTW.
Of course, everyone knows that hospitals have experienced a wild ride over the past decade, with major setbacks resulting from the Covid pandemic, especially the direct impacts on healthcare workers, and the continuing Primary Care crisis.
What is the situation for UMass Memorial?
UMass Memorial leaders are working with our congressional delegation to fully understand what’s coming for our hospital. They laid out the challenges for our hospital in the February Town Hall address, describing many of the same ideas described in this piece by UMMHealth CEO Eric Dickson.
At the most recent Town Hall, leaders described what were then projected to be $80 billion dollar cuts to the Federal Medicaid program, a scenario that would likely cost Massachusetts $2 billion. Eric Dickson estimated the hit to the UMass Memorial budget about $200 million.
Additionally, they are concerned that the Massachusetts uncompensated care fund will see a $225 million dollar shortfall, with a projected annual impact on our hospital of a $25 million loss.
Accordingly, the hospital is tightening its belt. It has implemented a more rigorous review process before posting non-clinical jobs, and, as you probably know, hospital leadership is asking departments to find ways to eliminate waste in processes, and avoid spending on non-essential items. Hospital leaders have recently said that they intend to avoid layoffs, as they did post-pandemic, when other hospitals experienced significant reductions in force.
Nationally, Unions Fighting to Protect Medicaid
Our parent union, AFSCME, is actively opposing cuts to Medicaid, Medicare, and Social Security, and is mobilizing members through the Get Organized campaign, also known as AFSCME GO. Read the official statement from the AFL-CIO, the largest federation of unions in the United States, here.