Hospitals Tighten Belts On Eve Of Medicare Cuts

Healthcare organizations are putting the brakes on spending. They're citing cuts in Medicare reimbursement and uncertainty about the Affordable Care Act.

Greg Salario is co-owner of US Med-Equip, a Houston-based supplier of biomedical equipment. The company works with about 650 hospitals across six states.

“And what we’ve seen with a lot of the hospitals out there is payment, even with our best hospitals, has gotten a little slow. There seems to be a trend or a buzz about being as conservative as possible with their budgets.”

Salario says that buzz always comes back to uncertainty about the price tag attached to the recent healthcare reform legislation.

“Probably one of the most extreme things happened with one our best customers — one of the biggest providers here in Texas — where they actually sent out a letter and said, look, if you want to do business with us in the future, you’re going to have to drop your prices by 5%, period.”

The Affordable Care Act won’t phase in completely until 2018. However, doctors are bracing for cuts to Medicare reimbursement, effective New Year’s Day.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

More Information