A Congressional override to President Bush’s veto of a Medicare bill may lessen Erlanger hospital’s financial woes, said Jim Brexler, the hospital’s CEO.

The override of the Medicare Improvements for Patients and Providers Act of 2008 will give Tennessee about $31 million in back payments for charity care, so-called “disproportionate care,” Mr. Brexler reported at today’s Chattanooga-Hamilton County Hospital Authority Budget and Finance Committee Meeting.

In addition, the override will ensure an additional $35 million reimbursement to the state in the 2009 fiscal year for hospital patients who are unable to pay for medical expenses, he said.

“We don’t know exactly the amount of money that we will receive, but we know it’s more than last year’s allocation in which we received about $2 million,” Mr. Brexler said.

The week-old override shot down President Bush's veto of legislation protecting doctors from a 10.6 percent cut in their reimbursement rates when treating Medicare patients.

Mr. Brexler said the state will receive one payment early this fiscal year and a second payment closer to July or August of 2009. He said the money is good news for the hospital, which has suffered budget woes since many patients can’t pay for treatment.

For complete details, see tomorrow’s Chattanooga Times Free Press.

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