Healthcare Business News

AHA doled out $3.3 million in 2013 to advocate Medicaid expansion

By Paul Demko
Posted: August 18, 2014 - 6:45 pm ET

The American Hospital Association's expenditures increased by 7% in 2013, to $117 million, spurred in part by efforts to convince states to expand Medicaid, according to the organization's most recent tax return.

The group spent $3.3 million on grants to state hospital associations last year to assist with efforts to convince states that they should expand Medicaid to households with incomes up to 138% of the federal poverty level.

Under the Patient Protection and Affordable Care Act, the federal government will pick up 100% of the tab for the first three years of Medicaid expansion and 90% of the cost thereafter.

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Roughly half of the states have opted for the Medicaid expansion. According to a recent report by the Robert Wood Johnson Foundation, states would leave more than $400 billion in federal funds untapped if they opt not to move forward with the coverage expansion and hospitals in those states would lose out on nearly $170 billion in payments.

“We saw an opportunity to really advance one of our key mission areas, which is coverage expansion,” said Jim Hinton, chairman of AHA’s board of directors and the president of Presbyterian Healthcare Services in Albuquerque. “These were one-time grants to various associations that would help them get the word out.”

The AHA took in $124 million in revenue in 2013, an increase of 5% compared with the previous year. The bulk of those dollars came from membership dues, which increased from $78.6 million to $78.9 million.

The AHA’s single-biggest expense was salaries and benefits, which totaled more than $50 million in 2013. The group’s CEO, Richard Umbdenstock, received total compensation and benefits of $1.9 million.

The AHA reported 2013 lobbying expenses of $1.8 million. That was down slightly from $1.9 million the previous year. Hinton said the group’s top priority in Washington is advocating for relief from onerous regulatory burdens, such as the two-midnight rule governing Medicare inpatient payments.

“Even though Congress is in recess, the regulatory issues march on,” Hinton said.

Follow Paul Demko on Twitter: @MHpdemko

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