Gregoire hears Medicaid reimbursement worry; Area leaders emphasize

Gov. Christine Gregoire told Spokane-area business leaders Friday that she shares their frustration over low state reimbursement rates for Eastern Washington hospitals, but she warned against expecting parity with Seattle medical centers any time soon.

"I think we need to put it under a microscope (and) redo it," Gregoire said of the state's differing Medicaid reimbursement rates, which pay Spokane hospitals just 47 percent of what Seattle hospitals receive for treating the poor and needy. "The problem is, it can't be done quickly and you need help soon. I think we need to work together on how you can get some help soon."

Persuading state officials to resolve the disparity has become a top goal of the Spokane Regional, Spokane Valley and the West Plains chambers of commerce, which visited Olympia this week.

Spokane Chamber President Rich Hadley said Spokane's hospitals are vital to the local economy. He said they care for as many Medicaid- eligible people as Seattle's public Harborview Medical Center does, but they get less than half as much for their services.

Hadley said part of the groups' two-day trip to the capital was to convince Seattle-area legislators that border cities such as Spokane are profoundly affected by issues like the state's business competitiveness, health care rates, taxes and business costs. He said Spokane and Vancouver face head-to-head economic competition with neighboring states.

"It's a little different than if you're located in Bellevue or Tukwila," Hadley said.

Gregoire offered her encouragement but stopped short of promising any immediate help. She also pledged continuing support for renovation of the Fox Theater.

The differing Medicaid reimbursement rates, she said, were brought to her attention last year during a campaign stop in Spokane. The disparity seemed so odd, Gregoire said, that she sought answers from the state Department of Social and Health Services but still has no idea why it exists.

"I have never understood what I have been told as to why. Therefore I have concluded there might not be a reason as to why," she said during a brief question-and-answer period following her meeting with the chamber group.

She said there's a similar problem in Clark County and pledged to support legislation that would better regulate Medicaid reimbursement. That promise drew roaring applause from the crowd.

The governor also talked about helping the economy grow and said that economic development is her "No. 1 priority."

Noting that the state once again faces a budget shortfall, Gregoire said the solution is to "put people back to work, get our economy up and going again. ... The single best social program in the country is a job."

Gregoire, a former Spokane resident, said she will be in Spokane on Feb. 10 to discuss economic development opportunities in the region. She also said her Eastern Washington background will be a part of her legacy as governor.

When she discussed education, the governor commended the work of Eastern Washington's colleges and universities. Gregoire said that a solid education system is one of the keys to economic development and that she wants to strengthen the state's entire education system, not just its colleges and universities.

"Let's take this problem on, let us ensure we have a quality education to offer our children and adults of today and tomorrow. That's our economic future; it's the economic future of Spokane."

In addition to meeting with Gregoire, the Spokane group also met with Democratic and Republican leaders, and with legislators and statehouse staff who specialize in health care, higher education and budget issues. Some were familiar faces, such as Senate Majority Leader Lisa Brown and Gregoire policy director Laurie Dolan, both from Spokane.

The three chambers have been making a strong - and unified - push in Olympia in recent years. The region has lost some clout now that Republicans are in the minority in both the House and Senate. But Brown remains one of the two most powerful lawmakers in Olympia.

"I think we're in pretty good shape," Hadley said. "She's knowledgeable about our priorities, she's articulate, and she's in a position to be able to help."

The chambers' trips also try to increase the region's visibility among Puget Sound-area lawmakers. "It's all about building relationships," Hadley said. "Spokane can't depend on its five (legislative) districts and assume we're going to win at the end of the day."

SIDEBAR: AT A GLANCE Spokane Regional Chamber's legislative priorities -- Raising Medicaid reimbursement rates for Spokane hospitals. -- State matching money for local spending on business- attracting infrastructure such as roads, water lines and sewers. -- Broadening rural economic development initiatives that allow sparsely populated communities to keep millions of dollars in sales taxes, which could benefit places such as Cheney, Deer Park, Medical Lake and Airway Heights. -- Creation of an "economic development strategic reserve account" to help lure new businesses and keep expanding companies. -- Boost funding for local colleges and research programs.

Staff writer Richard Roesler contributed to this story. Travis Hay can be reached at (360) 586-0002 or travis.hay@gmail.com.

Copyright c 2005 The Spokesman-Review
Provided by ProQuest Information and Learning Company. All rights Reserved.