Changes in Write Offs for State Health Insurance Plan Holders receiving treatment at MUSC

Please see Dr. Cawley's note that was sent in an email late yesterday.  I apologize that I was not able to pass this information on to all of you in person before the email went out.  I only learned of this in a meeting that ended at 5pm yesterday.  Other than this change, I we have not heard of any other cost saving initiatives that will affect staff this week.  I will continue to update you as I am updated.

Thanks, Melinda

Dear Medical Center and Medical University Employees,

With reductions in Medicare and Medicaid reimbursements being phased in as part of health care reform, all health care institutions are working diligently to reduce costs as much as possible while continuing to deliver high quality patient care. The Medical University of South Carolina (MUSC) is also focused on streamlining its operations and is faced with making some difficult choices to ensure its future viability.

As part of MUSC Health, the MUSC Medical Center has long waived balances on hospital bills for deductibles, copayments, and coinsurance for active state employees and their dependents who are insured under the Standard State Health Plan, which is administered by Blue Cross Blue Shield of SC.  The MUSC Medical Center has been the only institution to apply these waivers and the waivers annually cost our clinical enterprise more than $9.4 million. 

Unfortunately, in today’s health care economic climate, MUSC Medical Center has no choice but to discontinue this practice. Effective June 1, 2013, MUSC will no longer waive hospital balances for state employees, including our own employees, who are insured by the Standard State Health Plan.

MUSC and MUSC Medical Center are working with leaders in Columbia to explore novel ways MUSC can collaborate with the state health plan to lower costs and improve the health of all state employees, including our own.

MUSC has a long history of providing exemplary health care to the citizens of South Carolina.  The implementation of this difficult decision allows MUSC Health to decrease losses and be better positioned to meet the challenges of a quickly evolving health care system.  We look forward to serving the health care needs of you and your family for many years to come.

Sincerely,

Patrick J. Cawley, MD, MHM, FACHE
CEO/Executive Director, MUSC Medical Center
Vice President for Clinical Operations, MUSC