(Washington, DC) - Congressman Michael R. McNulty announced today that the House passed H.R. 3162, the Child Health and Medicare Protection (CHAMP) Act of 2007, which includes an additional $28 million for area hospitals due to an adjustment in the Medicare wage index for Albany, Schenectady, and Rensselaer county hospitals.

“For a number of years, the Medicare program has underpaid hospitals in our area for the wages they pay their employees. This inequity has made it difficult for hospitals in the Capitol Region to recruit and retain nurses and other heath care professionals. I am pleased that the House has approved this increase, which will result in $28 million more for hospitals in Albany, Schenectady and Rensselaer counties. This is a major victory not just for the hospitals, but also for the entire community,” said McNulty.

Hospitals in the Capital region face stiff competition from hospitals in nearby counties for nurses and other critical staff. Emergency room nurses and other hospital staff can travel 30 to 40 minutes to hospitals in nearby counties and earn 30 to 40 percent more than they can in the Capital Region. In addition, area hospitals must compete with local insurance plans, doctor’s offices, state government and others businesses for nurses and other health professionals.

Hospitals in the Capitol Region and around the country have been experiencing a shortage of staff because nurses and other health care staff can often find better paying jobs in real estate, in retail establishments, or in offices.

The Medicare program has allowed hospitals in other parts of the country to appeal for higher payments. Unfortunately, the way the federal Medicare program is structured, Capitol District hospitals did not have this option. As a result, local hospitals were receiving Medicare payments far below other areas in the region. The passage of this bill is an important first step in rectifying that inconsistency. The bill passed the House today by a vote of 225 to 204. The Senate must now pass the bill before it is sent to the White House for the President's review.

Below is an estimate of the potential increase in Medicare reimbursement for area hospitals:

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