HOUSE COMMITTEE ON

AUDIT & HUMAN SERVICES BUDGET REFORM

February 24, 2003 Hearing Room 50

3:00 PM Tapes 36 - 37

MEMBERS PRESENT: Rep. Ben Westlund, Chair

Rep. Steve March, Vice-Chair

Rep. Jeff Kruse

Rep. Jeff Merkley

MEMBERS EXCUSED: Rep. Randy Miller

Rep. Susan Morgan, Vice Chair

Rep. Bates

GUEST MEMBERS: Rep. Laurie Monnes Anderson

Rep. Mitch Greenlick

Rep. Gordon Anderson

Rep. Billy Dalto

STAFF PRESENT: Rick Berkobien, Committee Administrator

Kelly Fuller, Committee Assistant

ISSUES HEARD: Informational Meeting - Invited Testimony

Ken Rutledge, President of the Oregon Association of Hospitals and

Health Systems

“The Economic and Health Care Contributions of Oregon Hospitals”

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
Tape 36, A
002	Chair Westlund	Calls meeting to order, introduces Ken Rutledge, President of Oregon Association of Hospitals and Health Systems and opens the informational meeting.
INFORMATIONAL MEETING
010	Rutledge	Gives an overview of his presentation materials and begins his presentation. (EXHIBIT A)
113	Rep. Kruse	Asks if health care the largest industry in California.
116	Rutledge	Responds to the question about the health care industry in California.
125	Rep. Kruse	Comments that one would assume that there is no other industry that can measure up to it nation wide.
128	Rutledge	Concurs and continues presentation.
179	Berkobien	Asks if he knows roughly how this compares across the nation.
185	Rutledge	Comments how this compares across the nation and continues.
211	Rep. Greenlick	Asks a question about figures on patient revenue margin.
237	Rutledge	Concurs that he is correct and elaborates on his handouts and the figures being discussed. (EXHIBITS A, B, C, D, E)
TAPE 37, A
012	Rep. Kruse	Asks what the 12 percent proposed hits going to do to this number.
020	Rutledge	Comments about what the cuts are going to do to this figure.
091	Rep. Kruse	Makes comments about his hearing this morning.
097	Chair Westlund	Asks for clarification on the figures in (EXHIBIT A). Asks how many hospitals are there in Oregon. Asks if it fair to say that some of the 60 hospitals in Oregon are losing money.
123	Rutledge	Agrees with the comments and elaborates.
128	Rep. Greenlick	Makes comments about the percentage of small hospitals breaking even.
135	Rutledge	Gives more detail about the small hospitals.
144	Rep. Greenlick	Comments that it is probably optimistic that 7 broke even out of the 31.
145	Rep. Kruse	Comments that is based on the projected cuts to A & B that will not happen.
148	Rutledge	Gives more clarification.
199	Berkobien	Asks if he is going to go into charitable care that hospitals are suppose to provide.
205	Rutledge	Comments on charitable care.
242	Chair Westlund	Comments that you only have to accept those patients if you accept Federal dollars.
255	Rutledge	In terms of the emergency rooms you have to cover everyone., evaluation, treated and stabilized.
265	Rep. Greenlick	Asks if there is some obligation for education research and for charitable care required.
180	Rutledge	Makes comments about the obligation for education research and for charitable care.
299	Rep. Monnes Anderson	Asks if charitable care is a tax exemption for hospitals.
307	Rep. Greenlick	Clarifies his comments for Rep. Monnes Anderson.
313	Rutledge	Elaborates and makes additional comments.
346	Rep. March	Asks if we could have the raw numbers of charity use and emergency care, what the percentages are.
355	Rutledge	Comments that he will bring those figures for tomorrows meeting and continues presentation. Discusses (EXHIBIT B).
TAPE 36, B
062	Rep. Kruse	Comments that part of the reason hospital stays are less in Oregon is because we have a better network than other places.
070	Rutledge	Agrees and elaborates.
087	Rep. Kruse	Comments that it would be interesting to see the matrix of the mix between home health care and nursing homes that are owned by hospital and those that are not.
095	Rutledge	Responds to the questions on the matrix.
098	Rep. Kruse	Comments that hospital deliver a lot of services outside of hospitalization, some are profitable and some are not and there is a fear that we may lose them.
105	Rutledge	Responds.
114	Chair Westlund	Asks for a chart on Medicaid.
120	Rutledge	Will get the chart for us from his office.
	Chair Westlund	Calls for any questions from the committee, seeing none, closes the informational meeting and adjourns 4:48pm

EXHIBIT SUMMARY

A – Informational, prepared testimony, Ken Rutledge, 27 pp

B – Informational, Projected Impact of DHS Proposed Cuts, Ken Rutledge, 1 p

C – Informational, Oregon Hospitals, Ken Rutledge, 10 pp

D – Informational, Oregon Hospitals, Ken Rutledge, 2 pp

E – Informational, Health Professional Shortages, Ken Rutledge, 11 pp