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CT delegation and Malloy applaud CMS decision that will protect $30 million in federal funding for CT hospitals

July 7, 2011
Press Release

HARTFORD – Members of the Connecticut Congressional delegation and Governor Dannel Malloy applauded today’s decision by the Centers for Medicare and Medicaid Services (CMS) to reevaluate their analysis of payments to Connecticut hospitals in the FY 2012 Medicare Inpatient Prospective Payment System (IPPS) proposed rule.

Recently the Connecticut Hospital Association discovered an error in a calculation for the IPPS proposed rule. After hearing of this error, Congressmen Larson (CT-01) and Courtney (CT-02) met with CMS leadership to bring the mistake to their attention. Last week CMS confirmed the error and issued a correction today which will prevent $30 million in federal payments to Connecticut hospitals from being cut.

“I am very pleased to have joined with Congressman Courtney in helping to bring this oversight to CMS’ attention,” Congressman Larson said. “With this correction our entire state will benefit. Connecticut has some of the best hospitals and most talented medical professionals in the entire country and I am happy to do my part in ensuring they get the federal funding they deserve.”

“If left uncorrected, this anomaly would have particularly hit Windham Hospital the hardest,” said Congressman Courtney (CT-02). “CMS had incorrectly denied rural wage status to Windham resulting in a $6.15 million loss of revenue that would have severely damaged its operations. The meeting Congressman Larson and I held with CMS protected that critical institution in eastern Connecticut and concurrently helped all of Connecticut’s hospitals that would have suffered as a result.”

“Congressmen Larson and Courtney should be commended for leading the charge on this issue,” Governor Malloy said. “When it became clear that there was an error in the calculation used by CMS, the Connecticut Delegation in Washington came together on behalf of the hospitals in our state. The potential for our state to lose $30 million dollars as a result of this error would be devastating and I'm pleased this will no longer be the case.”

“With this correction, we will prevent Connecticut from losing a staggering $30 million in funding,” Congresswoman Rosa DeLauro (CT-03) said. “It is critical that Connecticut residents have access to the best medical care possible, and that means ensuring that the Centers for Medicare and Medicaid’s calculations are correct and appropriate for our state. I am very pleased with this decision and look forward to it benefitting our local hospitals.”

"This decision represents a clear victory for Connecticut hospitals,” said Congressman Chris Murphy (CT-05). “It's rare when a big federal agency admits when they are wrong, but after hearing from our delegation, CMS made the right call.  Protecting this funding is a big win for hospitals in my district and across the state."

"This result is both favorable and fair-- when Connecticut's hospitals particularly need and deserve it," Senator Richard Blumenthal said. "Federal officials did the right thing, cooperating with our state delegation, led especially by Congressmen Larson and Courtney.  I am grateful for their work on this critical issue."

The correction will affect 104 providers across the country.