Miller Questions Health Systems CEO During Ways and Means Hearing

Washington, D.C. - Congresswoman Carol Miller (R-WV) and her colleagues on the Ways and Means Committee held a hearing to investigate health care affordability for all Americans by examining the role of health systems. The hearing featured top executives from four diverse health systems. Members had the opportunity to examine these systems' evolution from hospitals into consolidated health care conglomerates and inquire whether this reality is in the best interest of patients or whether it contributes to rising costs for families and taxpayers. During the hearing, Congresswoman Miller examined how federal law and regulation, as well as open-ended taxpayer subsidization, have created perverse incentives that reward higher costs at the expense of health outcomes, and market power instead of true competition that delivers value for patients.

A video and transcript of Congresswoman Miller's questions and the provided responses can be found below.

Congresswoman Miller began by addressing the testimony submitted by witness Mr. Brad Woodhouse, the Executive Director of Protect Our Care. Mr. Woodhouse cited the recent closure of a Labor and Delivery Unit at Greenbrier Valley Medical Center as a direct result of H.R. 1, the Working Families Tax Cuts. Miller pushed back on this claim by citing the hospital's own explanation for the closure, which was a physician workforce issue, caused by the failure to recruit a physician to the area for over two years.

"Thank you Chairman and thank you to our witnesses for being here today. It's been quite an interesting discussion.

Mr. Woodhouse, in your written testimony you mentioned my district, and the decision of Greenbrier Valley Medical Center to close their labor and delivery unit.

You specifically cite this closure as being caused by H.R. 1, which you make it sound like it's the boogeyman. But that is false. It is a false statement.

Vandalia Health, the owner of the hospital, has said themselves that the closure is a recruitment issue and that the hospital had tried for over two years unsuccessfully to recruit a physician for the delivery room.

How could this be an issue caused by H.R. 1 when the hospital has been unable to recruit physicians to staff its labor and delivery unit for over two years - well before this legislation was ever under consideration?" asked Congresswoman Miller.

Congresswoman Miller then cited her legislation, the Defend Rural Health Act, that addresses the issue of large, urban hospital networks receiving benefits intended for rural areas. She questioned Dr. Brian G. Donley, President and Chief Executive Officer, New York-Presbyterian on the justification for eight of their hospitals in the middle of Manhattan being classified as "rural."

"Recruiting and maintaining physicians is only one of many challenges facing rural hospitals. I'm from West Virginia. I understand this issue.

Another issue impacting tax-exempt health systems involves the classification of the hospital itself.

I am disturbed at the trend of rural hospitals getting taken advantage of.

As we know, hospitals classified as "urban" receive higher Medicare payments, whereas hospitals classified as "rural" benefit from other things like easier access to the 340-B program and 30 percent more Graduate Medical Education funding.

That said, an increasing issue in recent years has been the "dual classification" of some tax-exempt hospitals as both rural and urban, seemingly taking advantage of a Medicare loophole in order to receive lucrative financial benefits.

That's why I joined with my colleague, Congressman Taylor, in introducing the Defend Rural Health Act. My bill safeguards federal resources intended for rural hospitals and the communities they serve. It closes the long-standing loophole that has allowed large urban hospitals to simultaneously classify as both "urban" and "rural," enabling them to improperly access benefits reserved for rural providers.

Doctor Donley, I understand that eight of New York Presbyterian's hospital campuses are classified as rural despite the proximity to New York City. Can you explain this to me? Do you think New York Presbyterian is a rural hospital?" asked Congresswoman Miller.

"First of all, thank you very much for your advocacy of rural health care. As a physician myself, rural health care is critical to the health care of this country, and we all need to focus on making sure that rural health care remains strong.

At New York Presbyterian, we do not consider ourselves a geographically rural hospital, but under CMS, we are designated as a rural referral center, and we are proud of the thousands of patients from rural America that come to us when there's nowhere to turn for a problem that they have. We're also proud of the 2500 residents that we train, 65% of which leave after their training to go across America, including rural America," responded Dr. Donley.

Congresswoman Miller concluded by asking Dr. Donley about instances of luxury Chanel gift bags being given to new mothers at New York Presbyterian's maternity hospital.

"I understand that reports have also surfaced about New York Presbyterian providing Chanel gift bags at its maternity hospital. Is New York Presbyterian using the lucrative financial benefits received due to its dual classification to buy luxury handbags instead of lowering costs for their patient care?" asked Congresswoman Miller.

"We absolutely are not. Those are donated and they're donated by the company's foundation. In addition to further philanthropic support that that company and their foundation gives to us to support a fourth trimester program to take care of all mothers and all children in the first 12 weeks after being born, which we all know is a critical time," answered Dr. Donley.

"That is really good news. I thank you one more time. I yield back my time. Thank you," concluded Congresswoman Miller.

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