Report: Hospitals set to cut care costs

WASHINGTON, July 6 (UPI) -- Major U.S. hospital associations are close to an agreement with the Obama administration to cut costs as part of healthcare reform, officials said.

The hospital groups were ready to cut an estimated $150 billion in costs to help the federal government cover the cost of reforming the healthcare system, The New York Times reported Tuesday.

The Washington Post said the figure was $155 billion, to be spread out over 10 years. Previously negotiated cost savings agreements with other healthcare sectors have spread the announced amounts over 10 years.

The agreement with hospital groups could be announced as soon as Wednesday, officials told the Times.

Jennifer Armstrong Gay, a spokeswoman for the American Hospital Association, told the Times discussions on hospitals' role in healthcare cost savings were "ongoing" but she provided no details.

Sen. Max Baucus, D-Mont. -- the chairman of the Senate Finance Committee, which is taking a lead role in developing legislative proposals -- declined to discuss the reported agreement with hospital groups but he said he expected Senate Democrats to introduce legislation before Congress begins its summer recess Aug. 8.

"We're working with groups and lots of different groups and I'm quite hopeful," Baucus said.

The White House has already announced an agreement with the Pharmaceutical Research and Manufacturers of America, the lobbying arm of the pharmaceutical industry, to cut Medicare drug costs $80 billion over 10 years.

Lobbyists from a wide range of healthcare interests reportedly have stepped up pressure on Congress as leaders on Capitol Hill develop legislative proposals for reform.