Maryland health officials warn of potential hospital closures under new Medicare model changes

Concerns over the future of Maryland's healthcare system took center stage during the recent FIN Committee session on January 21, 2025. Key discussions revolved around the potential elimination of the all-payer model, which could have dire consequences for hospitals and patient access to care across the state.

Dr. Krom highlighted the risks associated with dismantling the all-payer system, warning that such a move could lead to hospital closures and severely impact budgets as facilities renegotiate contracts with Medicare, Medicaid, and commercial payers. "Not only could we see hospital closures, but certainly worsening of the budgets," he stated, emphasizing the precarious financial situation many hospitals face, particularly those serving a higher number of Medicaid and Medicare beneficiaries.

The conversation underscored the delicate balance of Maryland's healthcare financing, where commercial payers typically contribute the most, followed by Medicare and then Medicaid. The potential loss of enhanced payments from Medicare could destabilize the entire healthcare system, leading to significant access issues for patients.

Further complicating the situation, committee members discussed the importance of understanding the federal government's criteria for terminating the all-payer model. They stressed the need for clear targets and methodologies to avoid arbitrary decisions that could jeopardize the state's healthcare framework.

As the session concluded, the implications of these discussions loomed large. The future of Maryland's healthcare system hangs in the balance, with stakeholders urging caution and strategic planning to navigate the challenges ahead. The anticipated flexibility in the upcoming model may provide some relief, but the path forward remains fraught with uncertainty.