RENEWING OKLAHOMA
Senator Owen Laughlin

Saving Rural Hospitals
February 3, 2003

"If I ever suffer a heart attack or have a crash, just get me to the nearest doctor, even if he's not very good." These were the words of a long time hospital administrator in Western Oklahoma. His point was that the best trauma center that is a long way away isn't of much value if you arrive there dead.

The fact is that medical care in most of Western Oklahoma and the Panhandle is very good and is vital. The real heroes of rural Oklahoma health care are the doctors and other health care providers. But what many don't realize is that small town hospitals are in a desperate struggle to survive. This is not a fabrication or exaggeration.

Why are rural hospitals in such big trouble? Much of the problem lies with The Oklahoma Health Care Authority (OHCA), which is like a wild out of control beast. OHCA is the Government Agency that pays for all Medicaid and Medicare healthcare which cares for many children and elderly. The problem is that the OHCA is accountable to no one.

OCHA recently raised wages for their already bloated bureaucracy and then sent out letters telling elderly nursing home patients that they would soon be cut off. Many elderly and their families were horrified.

OHCA gets $2.38 from the Federal Government for every $1.00 contributed by Oklahoma. There is no limit on these matching funds. But the fact is, Oklahoma is still a "donor" state. We do not get our proportionate share of Federal funds because the Legislative leadership has chosen to spend our resources elsewhere.

While virtually all hospitals in Northwest Oklahoma and the Panhandle have locally raised taxes for support, none of the metro Tulsa or Oklahoma City hospitals have any locally raised taxation. It was maddening last year when Tulsa tried to get a $30 million state appropriation from general revenue to help their hospitals when they raise no local revenue. Those were partially our tax dollars!!

After much study and consultation in Washington, DC, I have introduced a bill, (Senate Bill 736) which, if passed, will greatly help rural hospitals. My plan is to certify locally raised taxes and direct the OHCA to apply for federal matching funds at the rate of $2.38 for each local dollar. Those federal matching funds would then be sent to a segregated account at the OHCA for use only in the community where the local taxes were raised. These funds would then be used to increase reimbursement to local hospitals and health care providers. OHCA would not be allowed to cut other funding to those communities to counteract the new money. The Bush Administration is agreeable to this approach and is in fact encouraging new ideas to save rural hospitals.