Blue Ridge Hospice
A Message from Our CEO

July 7, 2008

Letter from Ernie
I am compelled to share with you the present situation all hospices across the country, including Blue Ridge Hospice, are facing.

The Centers for Medicare and Medicaid issued a Notice of Proposed Rulemaking on April 28, 2008 that will reduce hospice rates by eliminating the budget neutrality adjustment in the hospice wage index. This signifies the agency’s intention to circumvent congressional will, and reduce hospice rates through the regulatory process.

 
Ernie Carnevale, CEO  
Ernie Carnevale, CEO
 

In simple English, this means a significant cut in the amount of money Blue Ridge Hospice gets paid to care for our patients. Should this new rule go into effect for 2009, it will reduce our reimbursement by as much as $250,000 for next year, and much more in 2010 and 2011. At a time with rising gas prices and a slowing economy, we are all doing our share to weather the current economic storm; however, this potential hurricane moving around Washington, D.C. has me very concerned.

I find it ironic and meaningful that while we continue to provide compassionate care for those reaching the end of life, we do it while saving Medicare an average of $2,300 per patient according to an independent 2007 Duke University study. So, hospices across the country are saving the Medicare system money, but at the same time, they want to cut our reimbursement. It just doesn’t make sense.

Let me share a story with you. This past month, a patient under our care was suffering severe pain. Not all patients respond to traditional medications for pain management and must sometimes be placed on an alternative pain management program. In this case, an intravenous therapy was ordered by her physician, thus easing her pain and ensuring her comfort. The cost of this pain medication was $366.00 per day, or $11,000 for one month. This amount exceeds, by far, the daily reimbursement we received for this patient. Fortunately, through the support of our community, direct donations, sales of our butterfly plants, and attendance of our special events, we were able to ensure that this costly but necessary medication was provided to this patient.

So, I thank you more than ever for your continued financial support. Yes, you can help Blue Ridge Hospice by communicating to Congress. Information on our website will provide all the necessary details.

As you read about the exciting news of our Development Council volunteering their time to raise funds for our future, our time is now. We will continue to provide excellent end- of- life care to all our patients and their families.

Thank you for listening, and also for supporting Blue Ridge Hospice.

Ernest J. Carnevale Jr.
Chief Executive Officer

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