[Congressional Record Volume 157, Number 89 (Tuesday, June 21, 2011)]
[Senate]
[Page S3975]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ROCKEFELLER (for himself and Mr. Manchin):
  S. 1242. A bill to provide for the treatment of certain hospitals 
under the Medicare program; to the Committee on Finance.
  Mr. ROCKEFELLER. Mr. President, I, along with my colleague Senator 
Manchin, rise today to introduce the Fair Competition for Hospitals Act 
of 2011, legislation that will level the playing field for a handful of 
hospitals in the Northern Panhandle of West Virginia who are burdened 
by a payment disparity as compared to hospitals in neighboring States 
serving the same patient population. This legislation will adjust the 
wage index determination for these hospitals to make sure they are 
treated the same as the nearby facilities in other States. It will also 
help hospitals in other areas of the country facing a similar 
situation.
  Medicare's hospital wage index system was created to reflect the 
variation in the price of labor across the country. Usually, hospitals 
in different States are located far enough apart that they do not 
compete for the same patients or workforce, within the same labor 
market. However, the geography in the Northern Panhandle of West 
Virginia presents a unique situation; with a geographic area as little 
as 6 miles wide, hospitals in West Virginia are much more akin to 
hospitals in Ohio and Pennsylvania, on either side of the panhandle. 
Therefore, this small group of hospitals is competitively disadvantaged 
because of wage index differences across state borders. This 
competitive disadvantage is causing these hospitals to struggle under 
the weight of providing the same care for a lower payment and making it 
more difficult to continue the high level of care for which they have 
become known.
  These hospitals are vital cornerstones to the people in their 
communities. They employ more than 4,000 people and provide health care 
for tens of thousands more. As an essential part of the community, they 
should not be significantly disadvantaged by a payment structure that 
does not take into account the unique makeup of this area.
  The solution I am introducing today is budget neutral and fair. It 
will make sure that these hospitals in my State are treated on a level 
playing field with their competitors and not disadvantaged by an 
economically meaningless State border. I urge my colleagues to support 
this legislation.
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