[Congressional Record Volume 145, Number 110 (Friday, July 30, 1999)]
[House]
[Page H6757]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 HCFA INTERPRETATION OF THE BALANCED BUDGET ACT AND ITS EFFECTS ON THE 
                          HEALTH CARE INDUSTRY

  The SPEAKER pro tempore (Mrs. Biggert). Under a previous order of the 
House, the gentleman from Kentucky (Mr. Fletcher) is recognized for 5 
minutes.
  Mr. FLETCHER. Madam. Speaker, I appreciate the opportunity to speak 
after the gentlewoman from Connecticut (Mrs. Johnson), and I certainly 
concur with the things that she said.
  I am getting ready to catch my flight back to Kentucky, actually, 
just in probably about an hour.
  Madam Speaker, I just got a call from one of the nursing home 
companies back in Kentucky, and I have visited multiple of these 
nursing home units in Kentucky, as well as our rural hospitals and our 
teaching hospital at the University of Kentucky.
  I think as we look at what interpretation HCFA has taken of the 
Balanced Budget Act of 1997, I think we have some critical problems 
that are facing our Nation, especially in the care of our elderly. We 
see that our rural hospitals are having trouble; several of them are 
looking at the possibility of closing their doors. We have nursing 
homes that are going bankrupt; even nursing homes that are run by 
faith-based organizations, church groups where they really have 
contributions in addition to what they receive from reimbursements from 
Medicare and Medicaid.
  Yet we found that, with the very draconian interpretation of the 
Balanced Budget Act of 1997, we have such a reduction that even these 
operations that have operated very efficiently, not trying to defraud 
in any way, have been unable to really provide the services or to 
continue to provide the services that are needed for our senior 
citizens.
  So I think it is incumbent upon us in Congress and to call upon HCFA 
and the President to make sure that they relook at the Balanced Budget 
Act of 1997 and HCFA's interpretation of that. I would also like to 
work with the Congress and make sure that we address this very critical 
problem, that we address the needs of our senior citizens.
  As I talked to this one business owner who was very distraught, they 
have worked very hard at a family business to provide the kind of care 
that is needed for our senior citizens; and yet, when I see what a 
misinterpretation of the balanced budget has done in their capability 
of providing a business, they provide over 1,900 jobs in a business 
that has grown over several years to provide excellent health care in 
the long-term care business.
  And I see that what the interpretation has done is caused the 
possibility of driving that company into bankruptcy, affecting the care 
of a number of people, especially in my district, in the 6th district 
of Kentucky, and it has certainly affected their ability to provide the 
jobs and to provide the care that is needed.
  Madam Speaker, I just wanted to take this opportunity to share my 
concerns that I certainly share with the gentlewoman from Connecticut 
that have been stated here previously.

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