Wednesday, May 7th 2003

The Honorable John Kerry
United States Senate
304 Russell Senate Office Building
Washington, DC 20510

Dear Senator Kerry:

On behalf of our many hospitals, health care systems, networks and other providers of care, we are writing to express our strong support for your Medicaid disproportionate share hospital (DSH) program amendment to be offered at the Senate Finance Committee markup of the "Jobs and Growth Tax Act of 2003."  Your amendment would restore fiscal year 2003 Medicaid DSH funding that was cut as a result of policies adopted in the Balanced Budget Act of 1997.

Safety net hospitals cannot absorb the $1 billion loss resulting from the fiscal year 2003 cuts in the federal Medicaid DSH allotments.  Hospitals are facing a confluence of challenges - including increased uncompensated care due to the rise in the uninsured population - that is putting critical pressure on hospitals' ability to serve their entire communities.  Your amendment would help hospitals continue their mission of guaranteeing access to quality health care for all Americans.

Again, we strongly support your Medicaid DSH amendment and will work to help ensure its adoption in the Finance Committee package.


American Hospital Association
Association of American Medical Colleges
Federation of American Hospitals
National Association of Children's Hospitals
National Association of Public Hospitals and Health Systems


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