Visclosky Bill Seeks Status Change for Porter Memorial Hospital

Washington, D.C.  – Congressman Pete Visclosky introduced a bill late Wednesday to reclassify Porter Memorial Hospital in Valparaiso as part of the Chicago Metropolitan Statistical Area (MSA) for Medicare reimbursements.  The bill, H.R. 4745, would increase Medicare reimbursements for the hospital, which would enable it to end a hiring freeze and reinstate suspended programs.

“Jobs and health care are two of the most urgent concerns in Northwest Indiana,” Visclosky said.  “Reclassifying Porter Memorial Hospital will address both issues, by creating new jobs and providing expanded health care options for Porter County residents.”

“We at Porter Memorial Hospital feel strongly we should be included with the same reimbursements for Medicare as hospitals in Lake County are,” said Ron Winger, hospital president and CEO.  “That would allow us to continue to ensure the level of services are similar between Porter and Lake counties.”

If Porter County is reclassified at the Chicago MSA rate, Porter Memorial Hospital would become eligible for an estimated additional $4,146,000 in annual Medicare reimbursements.  Porter Memorial is currently reimbursed at a lower rate than hospitals in the Chicago MSA, even though the hospital is only 27 miles from the Chicago MSA and faces comparable salary and operation expenses.  Many Porter County residents travel to Chicago daily for business or pleasure.  Porter County is a suburb of Chicago.

The current classification has been a hardship for the hospital, its employees, and the community.  Since 1996, Porter Memorial has had to eliminate its Transitional Care Unit (TCU), a skilled nursing facility, and its psychiatric unit.  Furthermore, 32 employees lost their jobs in 1999 due to funding shortages, and 80 positions at the hospital remain unfilled for the same reason.  Reclassification would enable the hospital to reinstate services it has been forced to suspend, and also to fill vacant positions.

Porter County is currently classified as part of the Gary MSA, which also includes Lake County.  However, all Lake County hospitals were reclassified at the Chicago MSA reimbursement rate in 1999, leaving Porter Memorial as the only hospital in Northwest Indiana that is reimbursed at this lower rate.

“Reclassifying Porter Memorial Hospital is the right thing to do for the community, which needs the jobs and the health care options reclassification will provide,” Visclosky said.  “I will keep working hard to provide more jobs and better health care options for all Northwest Indiana residents.”