<DOC> [110th Congress House Hearings] [From the U.S. Government Printing Office via GPO Access] [DOCID: f:45290.wais] THE LACK OF HOSPITAL EMERGENCY SURGE CAPACITY: WILL THE ADMINISTRATION'S MEDICAID REGULATIONS MAKE IT WORSE? ======================================================================= HEARINGS before the COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED TENTH CONGRESS SECOND SESSION __________ MAY 5 AND 7, 2008 __________ Serial No. 110-95 __________ Printed for the use of the Committee on Oversight and Government Reform Available via the World Wide Web: http://www.gpoaccess.gov/congress/ index.html http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 45-290 PDF WASHINGTON DC: 2008 --------------------------------------------------------------------- For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092104 Mail: Stop IDCC, Washington, DC 20402ÿ090001 COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HENRY A. WAXMAN, California, Chairman EDOLPHUS TOWNS, New York TOM DAVIS, Virginia PAUL E. KANJORSKI, Pennsylvania DAN BURTON, Indiana CAROLYN B. MALONEY, New York CHRISTOPHER SHAYS, Connecticut ELIJAH E. CUMMINGS, Maryland JOHN M. McHUGH, New York DENNIS J. KUCINICH, Ohio JOHN L. MICA, Florida DANNY K. DAVIS, Illinois MARK E. SOUDER, Indiana JOHN F. TIERNEY, Massachusetts TODD RUSSELL PLATTS, Pennsylvania WM. LACY CLAY, Missouri CHRIS CANNON, Utah DIANE E. WATSON, California JOHN J. DUNCAN, Jr., Tennessee STEPHEN F. LYNCH, Massachusetts MICHAEL R. TURNER, Ohio BRIAN HIGGINS, New York DARRELL E. ISSA, California JOHN A. YARMUTH, Kentucky KENNY MARCHANT, Texas BRUCE L. BRALEY, Iowa LYNN A. WESTMORELAND, Georgia ELEANOR HOLMES NORTON, District of PATRICK T. McHENRY, North Carolina Columbia VIRGINIA FOXX, North Carolina BETTY McCOLLUM, Minnesota BRIAN P. BILBRAY, California JIM COOPER, Tennessee BILL SALI, Idaho CHRIS VAN HOLLEN, Maryland JIM JORDAN, Ohio PAUL W. HODES, New Hampshire CHRISTOPHER S. MURPHY, Connecticut JOHN P. SARBANES, Maryland PETER WELCH, Vermont ------ ------ Phil Schiliro, Chief of Staff Phil Barnett, Staff Director Earley Green, Chief Clerk Lawrence Halloran, Minority Staff Director C O N T E N T S ---------- Page Hearing held on: May 5, 2008.................................................. 1 May 7, 2008.................................................. 175 Statement of: Chertoff, Michael, Secretary of Homeland Security............ 205 Hoffman, Bruce, Ph.D., professor, Edmund A. Walsh School of Foreign Service, Security Studies Program, Georgetown University; Jay Wayne Meredith, M.D., professor and chairman, Department of General Surgery, Wake Forest University Baptist Medical Center; Colleen Conway-Welch, Ph.D., dean, Vanderbilt School of Nursing; Roger Lewis, M.D., Ph.D., Department of Emergency Medicine, Harbor-UCLA Medical Center; and Lisa Kaplowitz, M.D., deputy commission for emergency preparedness and response, Virginia Department of Health....................................... 19 Conway-Welch, Colleen, Ph.D.............................. 50 Hoffman, Bruce, Ph.D..................................... 19 Kaplowitz, Lisa, M.D..................................... 80 Lewis, Roger, M.D., Ph.D................................. 64 Meredith, Jay Wayne, M.D................................. 41 Leavitt, Michael O., Secretary of Health and Human Services.. 184 Letters, statements, etc., submitted for the record by: Chertoff, Michael, Secretary of Homeland Security, prepared statement of............................................... 207 Conway-Welch, Colleen, Ph.D., dean, Vanderbilt School of Nursing, prepared statement of............................. 53 Davis, Hon. Tom, a Representative in Congress from the State of Virginia: Wall Street Journal article.............................. 218 Prepared statement of.................................... 182 Hoffman, Bruce, Ph.D., professor, Edmund A. Walsh School of Foreign Service, Security Studies Program, Georgetown University, prepared statement of.......................... 22 Issa, Hon. Darrell E., a Representative in Congress from the State of California, various documents from the Governor of Virginia................................................... 132 Kaplowitz, Lisa, M.D., deputy commission for emergency preparedness and response, Virginia Department of Health, prepared statement of...................................... 83 Leavitt, Michael O., Secretary of Health and Human Services, prepared statement of...................................... 187 Lewis, Roger, M.D., Ph.D., Department of Emergency Medicine, Harbor-UCLA Medical Center, prepared statement of.......... 66 McCullum, Hon. Betty, a Representative in Congress from the State of Minnesota, various prepared statements............ 231 Meredith, Jay Wayne, M.D., professor and chairman, Department of General Surgery, Wake Forest University Baptist Medical Center, prepared statement of.............................. 44 Sali, Hon. Bill, a Representative in Congress from the State of Idaho, letter dated May 12, 2008........................ 238 Shays, Hon. Christopher, a Representative in Congress from the State of Connecticut: Articles published in the Society for Academic Emergency Medicine............................................... 97 Prepared statement of.................................... 14 Waxman, Chairman Henry A., a Representative in Congress from the State of California, prepared statements of........... 4, 177 THE LACK OF HOSPITAL EMERGENCY SURGE CAPACITY: WILL THE ADMINISTRATION'S MEDICAID REGULATIONS MAKE IT WORSE? DAY ONE ---------- MONDAY, MAY 5, 2008 House of Representatives, Committee on Oversight and Government Reform, Washington, DC. The committee met, pursuant to notice, at 10 a.m., in room 2154, Rayburn House Office Building, Hon. Henry A. Waxman (chairman of the committee) presiding. Present: Representatives Waxman, Watson, Norton, Shays, Issa, and Bilbray. Staff present: Phil Barnett, staff director and chief counsel; Karen Lightfoot, communications director and senior policy advisor; Andy Schneider, chief health counsel; Sarah Despres, senior health counsel; Steve Cha, professional staff member; Earley Green, chief clerk; Carren Audhman and Ella Hoffman, press assistants; Leneal Scott, information systems manager; Kerry Gutknecht and William Ragland, staff assistants; Larry Halloran, minority staff director; Jennifer Safavian, minority chief counsel for oversight and investigations; Christopher Bright, Jill Schmaltz, Benjamin Chance, and Todd Greenwood, minority professional staff members; John Cuaderes, minority senior investigator and policy advisor; and Ali Ahmad, minority deputy press secretary. Chairman Waxman. The meeting of the committee will please come to order. Today we're holding the first of 2 days of hearings on the impact of the administration's Medicaid regulations on hospital emergency surge capacity and the ability of hospital emergency rooms to respond to a sudden influx of casualties from a terrorist attack. The committee held a hearing in June 2007 on the Nation's emergency care crisis. We heard from emergency care physicians that America's emergency departments are already operating over capacity. We were warned that if the Nation does not address the chronic overcrowding of emergency rooms their ability to respond to a public health disaster or terrorist attack will be severely jeopardized. The Department of Health and Human Services was represented at that hearing, but despite the warnings the Department has issued three Medicaid regulations that will reduce Federal funds to public and teaching hospitals by tens of billions of dollars over the next 5 years. The committee held a hearing on these and other Medicaid regulations in November 2007. An emergency room physician told us that if these regulations are allowed to go into effect, the Nation's emergency rooms will take a devastating financial hit. The two hearings that we will be holding this week will focus on the impact of these Medicaid regulations on our capacity to respond to the most likely terrorist attack, one using bombs or other conventional explosives. Today we will be hearing from an independent expert on terrorism, an emergency room physician, a trauma surgeon, a nurse with expertise in emergency preparedness, and a State official responsible for planning for disasters like a terrorist attack. On Wednesday, we'll hear testimony from the two Federal officials with lead responsibility for Homeland Security and for Medicaid, the Secretary of Homeland Security, Michael Chertoff, and the Secretary of Health and Human Services, Michael Leavitt. In preparation for this hearing the committee majority staff conducted a survey of emergency room capacity in five cities considered at greatest risk of a terrific attack, Washington, DC, New York, Los Angeles, Chicago and Houston, as well as Denver and Minneapolis, where the nominating conventions will be held later this year. The survey took place on Tuesday, March 25th at 4:30 p.m. Thirty-four Level 1 trauma centers participated in the survey. What the survey found was truly alarming. The 34 hospitals surveyed did not have sufficient ER capacity to treat a sudden influx of victims from a terrorist bombing. The hospitals had virtually no free intensive care unit beds to treat the most seriously injured casualties. The hospitals did not have enough regular inpatient beds to handle the less seriously injured victims. The situation in Washington, DC, and Los Angeles was particularly dire. There was no available space in the emergency rooms at the main trauma centers serving Washington, DC. One emergency room was operating at over 200 percent of capacity. More than half the patients receiving emergency care in the hospital had been diverted to hallways and waiting rooms for treatment. And in Los Angeles three of the five Level 1 trauma centers were so overcrowded that they went on diversion, which means they closed their doors to new patients. If a terrorist attack had occurred in Washington, DC, or Los Angeles on March 25th when we did our survey, the consequences could have been catastrophic. The emergency care systems were stretched to the breaking point and had no capacity to respond to a surge of victims. Our investigation has also revealed what appears to be a complete breakdown in communications between the Department of Homeland Security and the Department of Health and Human Services. In October 2007, the President issued Homeland Security Directive No. 21. The directive requires the Secretary of HHS to identify any regulatory barriers to public health and medical preparedness that can be eliminated by appropriate regulatory action. It also requires the Secretary of HHS to coordinate with the Secretary of DHS to ensure we maintain a robust capacity to provide emergency care. Yet when the committee requested documents reflecting an analysis of the potential implications of the Medicaid regulations on hospital emergency surge capacity, neither department was able to produce a single document. This is incomprehensible. It appears that Secretary Leavitt signed regulations that will take hundreds and millions of dollars away from hospital emergency rooms without once considering the impact on national preparedness. And it appears that Secretary Chertoff never raised a single objection. The Department of Health and Human Services was represented at the committee's June 2007 hearing on emergency care crisis. The importance of adequate Federal funding for emergency and trauma care was repeatedly stressed by the expert witnesses at the hearing. If Secretary Leavitt approves the Medicaid regulations without considering their impact on preparedness and without consulting with Secretary Chertoff, that would be a shocking and inexplicable breach of responsibilities. The most damaging of the administration's Medicaid regulations will go into affect on May 26th, just 3 weeks from today. As the House voted overwhelmingly, the regulation should be stopped until their true impacts can be understood. I don't know whether the House legislation will pass the Senate or, if it does, whether the bill will survive a threatened Presidential veto. But I do know that Secretary Leavitt and Secretary Chertoff have the power to stop these destructive regulations from going into effect. And I intend to ask them whether they will use their authority to protect hospital emergency rooms. The Federal Government has poured billions of dollars into homeland security since the 9/11 attack. As investigations by this committee have documented, much of this investment was squandered on boondoggle contracts. This was evident after Hurricane Katrina when our capacity to respond fell tragically short. The question we will be exploring today and on Wednesday is whether a key component of our national response hospital emergency rooms will be ready when the next disaster strikes. I want to recognize Mr. Shays. He is acting as the ranking Republican for today. [The prepared statement of Chairman Henry A. Waxman follows:] [GRAPHIC] [TIFF OMITTED] T5290.001 [GRAPHIC] [TIFF OMITTED] T5290.002 [GRAPHIC] [TIFF OMITTED] T5290.003 [GRAPHIC] [TIFF OMITTED] T5290.004 [GRAPHIC] [TIFF OMITTED] T5290.005 [GRAPHIC] [TIFF OMITTED] T5290.006 [GRAPHIC] [TIFF OMITTED] T5290.007 [GRAPHIC] [TIFF OMITTED] T5290.008 Mr. Shays. Thank you, Mr. Chairman. I appreciate, Chairman Waxman, your calling today's hearing to review the relationship between emergency medical surge capacity and Medicaid reimbursement policies. The sad reality we must contend with every day is the need to be ready for that one horrible day when terrorism sends mass casualties to an already overburdened medical system. Medicaid reimbursement policies may need to change to better support large urban emergency and trauma centers, but those changes alone will never assure adequatesurge capacity. We cannot afford to build and maintain idle trauma facilities waiting for the tragic day we pray never comes when they will be needed. In 2004, 10 terrorist bombs exploded simultaneously on commuter trains in Madrid, Spain, killing 177 people and injuring more than 2000. The nearest hospital had to absorb and care for almost 300 patients in a very short time. In the event of a similar attack here our hospitals will be tasked with saving the greatest number of lives while confronting a large surge of patients and coping with the wave of the worried well. Many will arrive suffering injuries not typically seen in emergency departments. Medical staff will be facing the crisis with imperfect information about the causes and scope of the event and under severe emotional stress. To reduce the stress and treat mass casualties effectively decisions need to be made, resources allocated, and communication established now, not during the unexpected but perhaps inevitable catastrophic event. Today's hearing is intended to focus on a single aspect of emergency preparedness, Federal reimbursement policies and their implications for Level 1 trauma centers in major metropolitan areas. I appreciate Chairman Waxman's perspective on the administration's proposed Medicaid regulation changes and join him in voting for a moratorium on their implementation. But I am concerned that a narrow focus on just one component of medical preparedness risks oversimplifying the far more complex realities the health system will face when confronting a catastrophic event. Stabilizing Medicaid payment policies alone won't guarantee readiness against bombs or epidemics any more than an annual cost to assure people they're safe against inflation or recession. It is a factor to be sure, but not the sole or even the determinative element to worry about when disaster strikes. We should not miss this opportunity to address the full range of interrelated issues that must be woven together to build and maintain a prepared health system. That being said, there is no question emergency departments are overcrowded, often are understaffed and operating with strained resources on a day-to-day basis. Ambulances are often diverted to distant hospitals and patients are parked in substandard areas while waiting for an inpatient bed. In 2006, the Institutes of Medicine [IOM], found few financial incentives for hospitals to address emergency room overcrowding. Admissions from emergency departments are often the lowest priority because patients from other areas of the hospital generate more revenue. This is not to disparage hospitals. They operate on tight margins and must navigate challenging, often perverse financial incentives, including Federal reimbursement standards. Strong management, regional cooperation and greater hospital efficiencies offer some hope for alleviating the strain on emergency departments, but during a catastrophic event bringing so-called surge capacity online involves very different elements. In a mass casualty response regional capacity is more important than any single hospital capability. Hospitals that normally compete with each other need to be prepared to share information about resources and personnel. They need to agree beforehand to cancel elective surgeries, move noncritical patients and expand beyond the daily triage and intake rates. Unlike daily operations, surge and emergency response requires interoperable and backup communication systems, interoperable and backup communication systems, altered standards of care, unique legal liability determinations and transportation logistics. Should regional resources or capacity prove inadequate, State assets will be brought to bear. Available beds and patients will need to be tracked in realtime so resources can be efficiently and effectively matched with urgent needs. Civilian and even military transportation systems will have to be coordinated. If needed, Federal resources and mobile units will be integrated into the ongoing response. All of these levels and systems have to fall into place in a short time during a chaotic situation. So it is clear daily emergency department operations are at best an indirect and imperfect predictor of emergency response capabilities. The better approach is for local, State and the Federal Governments to plan for mass casualty scenarios and exercise those plans. That way specific gaps can be identified and funding can be targeted to address disconnects and dysfunctions in the regional response. Fluctuating per capita Medicaid payments probably will not and often cannot be used to fund those larger structural elements of surge capacity. Today's hearing can be an opportunity to evaluate all the elements of emergency medical preparedness. We value the expertise our witnesses bring to this important discussion, and we look forward to their testimony. [The prepared statement of Hon. Christopher Shays follows:] [GRAPHIC] [TIFF OMITTED] T5290.009 [GRAPHIC] [TIFF OMITTED] T5290.010 Chairman Waxman. Thank you very much. Mr. Shays. While the rules provide for just the chairman and the ranking member to give opening statements, I do want to give an opportunity for the two other Members that are with us to make any comments they wish to make. Ms. Watson. Ms. Watson. Thank you very much, Mr. Chairman the Los Angeles County board of supervisors visited Capitol Hill last week. And the No. 1 theme that continued to surface in my conversations with many of the supervisors was the widening gap between the demand for Medicare/Medicaid assistance and the administration's new regulations that will limit the amount of Medicaid/Medicare reimbursement to the State. The administration estimates that the total fiscal impact of the regulatory changes of $15 billion, but a committee report, based on States that responded to the committee's request for information, concludes that the change in regulations would reduce Federal payments to States by $49.7 billion over the next 5 years. The cost to California alone is estimated to be $10.8 billion over 5 years. Mr. Chairman, as you well know, in the case of California the reductions and Federal funding would destabilize an already fragile medical care delivery service for low income residents and the uninsured. The impact of these changes will be far reaching and potentially catastrophic. In the last year we have witnessed the closing of many of King/Drew's hospital medical facilities located in Watts, CA. The emergency care facility has been closed now for some time. The impact of this closing is that residents from this underserved area of Los Angeles are transported to other areas of town and the critical minutes that are needed to administer care to save lives are now lost. The impact of King/Drew closing has had a cascading effect on all the other area hospitals, including those outside of the Los Angeles area, that now must pick up the slack. I cannot imagine what would happen in these areas in the case of a mass catastrophic event such as a terrorist attack using conventional explosives or a natural disaster since they are already suffering from a lack of adequate emergency medical care facilities. So I look forward to the testimony from today's witnesses who are experts in medicine and medical delivery services and counterterrorism. Again, thank you, Mr. Chairman, for holding this hearing. Chairman Waxman. Thank you, Ms. Watson. Mr. Issa. Mr. Issa. Thank you, Mr. Chairman, for holding this hearing. Mr. Chairman, I'm troubled with today's hearing for one reason. I think there's a legitimate problem, overcrowding of our emergency rooms. That overcrowding comes from a combination of illegal immigration, legal immigration and a pattern of going to emergency rooms when in fact urgent care would be a better alternative. I think it is part of a bigger problem we particularly in California face that we have in fact a large amount of uninsured. But they are not insured, they are insured at the emergency room. That overcrowding needs to be dealt with. And I trust that on a bipartisan basis in good time we will deal with the challenges created by illegal immigration, individuals who either because of that or because they lack insurance are choosing the emergency room over more effective and efficient delivery systems. Having said that, I particularly am concerned that a partisan amateur survey was done in order to justify or politicize today's hearing. It's very clear both by the ranking member's opening statement and by the facts that we will clearly see here today that a survey of emergency rooms done by Democrat staff for the purpose of getting the answer they wanted, which was of course we're overcrowded at the emergency room, is self-serving and unfortunately short-sighted. The number of beds that could be made available in a hospital, the number of health care professionals, doctors, nurses and the like that could be brought to bear within a period of time would have been part of any effective analysis of what the surge capacity could be, the number of patients who, although in the hospital, could be removed to other facilities of lesser capability to make room for severely injured people. Although this would not change the fact that if we had a Madrid type occurrence, even in a city like Los Angeles, 2000 severely injured people would strain our capacity in the first few hours. And undoubtedly, undoubtedly, just like a 200-car pileup on the 405, we would have loss of life that we would have not have in a lesser occurrence. I do believe that the challenges of Medicare and Medicaid in dealing with escalating costs, and particularly for California the cost of reimbursement which has not been sufficient, needs to be looked at. I hope that we can work on a bipartisan basis to deal with these problems. I hope that today's hearings will in fact cause us all to understand the causes and the cures for overcrowding of our emergency rooms. However, I must reiterate that the Federal response for this type of emergency needs to be to pay to train and to pay to test for these kinds of emergencies. That's the appropriate area for the Federal Government to deal with in addition to providing certain life saving resources such as mass antibiotics like Cipro and of course also smallpox and other vaccinations in case of an attack. These are the Federal responses that were agreed to after 9/11 on a bipartisan basis, and I would trust that at a minimum we would not allow an issue such as how much is reimbursed to California on a day-to-day basis to get in the way of making sure that we fully fund those items which would not and could not be funded locally or by States. Mr. Chairman, I look forward to today's hearing. You have a distinguished panel that I believe can do a great deal to have us understand the problem. With that, I yield back. Chairman Waxman. Our witnesses today do amount to a very distinguished panel and we're looking forward to hearing from them. Dr. Bruce Hoffman is professor of the Edmund A. Walsh School of Foreign Service at Georgetown University here to discuss mass casually events involving conventional explosives in general and suicide terrorism in particular. He will also discuss his research on the Australian, British and Israeli responses to these types of terrorist attacks. Dr. Wayne Meredith is a professor and chairman of the Department of General Surgery at Wake Forest University Baptist Medical Center. In his role as a trauma surgeon Dr. Meredith will discuss the clinical importance of immediate response to trauma such as that resulting from a blast attack as well as the importance of adequate financing to maintain a coordinated trauma care system. Dr. Colleen Conway-Welch is the dean of the School of Nursing at Vanderbilt University. She'll discuss the implications of the Medicaid regulations for hospital emergency and trauma care capacity, including whether States or localities will be able to hold hospitals harmless against the loss of Federal funds that will result from the regulations. Dr. Roger Lewis is an attending physician and professor in the Department of Emergency Medicine at Harbor-UCLA Medical Center. He will discuss the connections between emergency department crowding, surge capacity and disaster preparedness. He will also discuss the impact of the Medicaid regulations on his hospital, which participated in the majority staff snapshot survey. Dr. Lisa Kaplowitz is the deputy commissioner for emergency preparedness and response at the Virginia Department of Health. She will present the State perspective on emergency preparedness in response to mass casualty events, including the lessons learned from the Virginia Tech shootings. We're pleased to have you all here today. We welcome you to our hearing. It's the policy of this committee that all witnesses that testify before us do so under oath. So if you would please rise and raise your right hands, I would appreciate it. [Witnesses sworn.] Chairman Waxman. The record will indicate that each of the witnesses answered in the affirmative. Your prepared statements will be made part of the record in full. What we'd like to ask you to do is to acknowledge the fact that there's a clock that will be running, indicating 5 minutes. For the first 4 minutes it will be green, for the last minute will be orange, and then when the time is up it will be red. And when you see the red light we would appreciate it if you would try to conclude your oral presentation to us. If you need another minute or so and it is important to get the points across, we're not going to be so rigid about it, but this is some way of trying to keep some time period that's fair to everybody. Dr. Hoffman, let's start with you. There's a button on the base of the mic, we'd like to hear what you have to say. STATEMENTS OF BRUCE HOFFMAN, PH.D., PROFESSOR, EDMUND A. WALSH SCHOOL OF FOREIGN SERVICE, SECURITY STUDIES PROGRAM, GEORGETOWN UNIVERSITY; JAY WAYNE MEREDITH, M.D., PROFESSOR AND CHAIRMAN, DEPARTMENT OF GENERAL SURGERY, WAKE FOREST UNIVERSITY BAPTIST MEDICAL CENTER; COLLEEN CONWAY-WELCH, PH.D., DEAN, VANDERBILT SCHOOL OF NURSING; ROGER LEWIS, M.D., PH.D., DEPARTMENT OF EMERGENCY MEDICINE, HARBOR-UCLA MEDICAL CENTER; AND LISA KAPLOWITZ, M.D., DEPUTY COMMISSION FOR EMERGENCY PREPAREDNESS AND RESPONSE, VIRGINIA DEPARTMENT OF HEALTH STATEMENT OF BRUCE HOFFMAN, PH.D. Mr. Hoffman. Thank you, Mr. Chairman, for the opportunity to testify before this committee on this important issue. As a counterterrorism specialist and a Ph.D., not an M.D., let me share with the committee my impressions of the unique challenges conventional terrorist bombings and suicide attacks present. This is not a place to have a wristwatch, Dr. Shmuel ``Shmulik'' Shapira observed as we looked at x-rays of suicide bombing victims in his office in Jerusalem's Hadassah Ein Kerem Hospital nearly 6 years ago. The presence of such foreign objects in the bodies of his patients no longer surprised Dr. Shapira, a pioneering figure in the field called terror medicine. We had cases with a nail in the neck or nuts and bolts in the thigh, a ball bearing in the skull, he recounted. Such are the weapons of terrorists today, nuts and bolts, screws and ball bearings or any metal shards or odd bits of broken machinery that can be packed together with enough homemade explosive or military ordnance and then strapped to the body of a suicide terrorist dispatched to attack any place people gather. According to one estimate, the total cost of a typical Palestinian suicide operation, for example, is about $150. Yet for this--yet this modest sum yields a very attractive return. On average suicide operations worldwide kill about four times as many persons as other kinds of terrorist attacks. In Israel the average is even higher, inflicting six times the number of deaths and roughly 26 times the number of casualties than other acts of terrorism. Despite the potential array of atypical medical contingencies that the U.S. health system could face if confronted with mass casualty events [MCE], resulting from terrorist attacks using conventional explosives, it is not clear that we are sufficiently prepared. Historically the bias and most MCE planning has been toward the worst case scenarios, often containing weapons of mass destruction, such as chemical, biological, radiological and nuclear weapons, on the assumption that any other MCEs, including those where conventional explosions are used, could simply be addressed as a lesser included contingency. By contrast, Israeli surgeons have found that the metal debris and other anti-personnel matter packed around the explosive charge causes injury to victims, victims that are completely atypical of other emergency traumas in severity, complexity and number. Unlike gunshot wounds from high velocity bullets that generally pass through the victim, for instance, these secondary fragments remain lodged in the victim's body. Indeed, although much is known about the ballistic characteristics of high velocity bullets and shrapnel used in military ordnance, very little research has yet to be done on the ballistic properties of the improvised and anti-personnel materials used in terrorist bombs. The over pressure caused by the explosion is especially damaging to the air filled organs of one's body. For this reason the greatest risk of injury are to the lungs, gastrointestinal tract and auditory system. The lungs are the most sensitive organ. And ascertaining the extent of damage can be particularly challenging given that signs of respiratory failure may not appear until up to 24 hours after the explosion. And over 40 percent of victims injured by secondary fragments from bombs suffer multiple wounds in different places of their body. By comparison fewer than 10 percent of gunshot victims typically are wounded in more than one place on their body. A single victim may thus be affected in a variety of radically different ways. In addition, severe burn injuries may have been sustained by victims on top of all the above trauma. Thus critical injuries account for 25 percent of terrorist victims in Israel overall compared with 3 percent with nonterrorism-related injuries. Australia's principal experiences with terrorist MCEs has primarily been as a result of the October 2002 bombings in Bali, Indonesia, where 91 Australian citizens were killed and 66 injured. The survivors were air lifted to Darwin where the vast majority were treated at the Royal Darwin Hospital. Forty-five percent of these survivors were suffering from major trauma and all had severe burns. The large number of burn victims presented a special challenge to the Royal Darwin Hospital, as indeed no one hospital in the entirety of Australia had the capacity or capabilities to manage that many blast and burn victims. Accordingly, the Australian medical authorities decided to move them to other hospitals across Australia. London's emergency preparedness and response in the event of terrorist MCEs had been based on New York City's experience with the 9/11 attacks. However, the suicide bombings of the three subway cars and bus on July 7, 2005 was a significantly different medical challenge. In New York City on 9/11 many persons died and only a few survived. The opposite occurred on July 7th when only a small proportion of victims lost their lives, 52 persons tragically, but more than 10 times that number were injured. London's long experience with Irish terrorism, coupled with extensive planning, drills and other exercises ensured that the city's emergency services responded quickly and effectively in a highly coordinated manner. But even London's well-honed response to the MCE on July 7, 2005 was not without problems. For example, communications between first responders with hospitals or their control rooms were not as good as they should have been, which resulted in uneven and inappropriate distribution of casualties among area hospitals. What emerges from this discussion the medical communities emergency response and preparedness for terrorist MCEs involving conventional explosions and suicide attacks are two main points: First, that there are lessons we can learn from other countries' experiences with terrorist bombings and suicide attacks that would significantly improve and speed our recovery should terrorists strike here. Israel, Australian, Britain and others are highly relevant examples. The second is that the best way to save as many lives as possible after a terrorist bombing or suicide attack is for physicians and other health care workers to undergo intensive training and preparation before an attack, including staging drills at hospitals to cope with sudden overflow of victims with a variety of injuries from terrorist attacks. Medical professionals and first responders must also understand that the specific demands of responding to bombings and suicide attacks are uniquely challenging. Death and injury may come not only from shrapnel and projectiles, but also from collapsed and pulverized vital organs, horrific burns, seared lungs and internal bleeding. It is crucial that emergency responders evaluate their response protocols and be prepared for the unusual circumstances created by bomb attacks. Moreover, given the increased financial stress on our Nation's health system in general and urban hospitals in particular, any degradation of our existing capabilities will pose major challenges to our Nation's readiness for attack. Indeed, the opposite is required, a strengthening of our capabilities of hospitals and for the emergency services that we require to effectively respond to a terrorist MCE involving conventional bombing and suicide attacks. Thank you. [The prepared statement of Mr. Hoffman follows:] [GRAPHIC] [TIFF OMITTED] T5290.011 [GRAPHIC] [TIFF OMITTED] T5290.012 [GRAPHIC] [TIFF OMITTED] T5290.013 [GRAPHIC] [TIFF OMITTED] T5290.014 [GRAPHIC] [TIFF OMITTED] T5290.015 [GRAPHIC] [TIFF OMITTED] T5290.016 [GRAPHIC] [TIFF OMITTED] T5290.017 [GRAPHIC] [TIFF OMITTED] T5290.018 [GRAPHIC] [TIFF OMITTED] T5290.019 [GRAPHIC] [TIFF OMITTED] T5290.020 [GRAPHIC] [TIFF OMITTED] T5290.021 [GRAPHIC] [TIFF OMITTED] T5290.022 [GRAPHIC] [TIFF OMITTED] T5290.023 [GRAPHIC] [TIFF OMITTED] T5290.024 [GRAPHIC] [TIFF OMITTED] T5290.025 [GRAPHIC] [TIFF OMITTED] T5290.026 [GRAPHIC] [TIFF OMITTED] T5290.027 [GRAPHIC] [TIFF OMITTED] T5290.028 [GRAPHIC] [TIFF OMITTED] T5290.029 Chairman Waxman. Thank you very much, Dr. Hoffman. Dr. Meredith. STATEMENT OF JAY WAYNE MEREDITH, M.D. Dr. Meredith. Thank you, Chairman Waxman, Representative Shays, distinguished members of the community, and guests. Thank you for the opportunity to appear before you today to discuss the impact of the proposed Medicaid regulations we have on trauma centers and trauma center preparedness in our country. My name is Wayne Meredith. I'm the chairman of the Surgery Department at Wake Forest University School of Medicine, and I volunteer as the medical director of Trauma Programs at the American College of Surgeons. What is trauma? Trauma is a major public health problem of which I am sure you are aware, but want to emphasize for you it is the No. 1 killer of people under the age of 44. That means if your children or grandchildren are going to die the reason they are going to die is most likely going to be from an injury. And the appropriate best way to keep that injury from happening is to have them treated in a trauma center, to make a trauma center available to them. That's been shown to reduce their risk of dying from a serious 25 percent. That's better than many other treatments that we consider standard treatment for any other condition. It is not standard treatment across America today because trauma center care, the systems are disorganized, the availability of trauma centers for providing that system are disorganized. Trauma care is emergent, but not all emergency care is trauma care. These are serious injuries. It requires a level of readiness of the hospital, it requires a level of expertise of the people to be there to make it so that they can be available when it occurs. I've had the great privilege of treating well over 10,000 patients over the years who have survived and overcome significant injuries. Just a small sampling of those patients include such patients as Greg Thomas, who was a 40-year old social worker riding to work. He was struck by a car and severely injured, he was wish-boned, tearing your leg apart and splitting your body halfway up the middle. He--he had a crushed chest, his pelvis was broken in two, his left leg finally had to be amputated, but he was able to survive because he got to a trauma center immediately, he had the kind of care he required. He now comes back to volunteer at our hospital to help with the psychological help for other people that are being treated there. Josh Brown was being a good Samaritan, stopped to help someone change a tire, was struck by a car while he was doing that. Arrived bleeding to death in shock, and he had available to him a team of people waiting 24/7 to be available to take care of him and is therefore able to be discharged. And a story I particularly like, Jason Hong was a student at our college. He worked--he was working in his family's convenience store in town. The convenience store was robbed. He was shot in his thigh, striking a major artery and vein in his thigh and was bleeding to death from that. Took him to the trauma center immediately. We opened his leg, stanched the bleeding which was profuse. Repaired those injuries by taking vein from his other leg and placing it there. He survived, and, kept his leg. Now he ultimately came back to decide he wanted to be a doctor. He is now graduating from medical school this May and he will be joining our residency and starting to be a surgery resident in July of this year. Trauma centers have to be prepared to respond on a minute's notice for all kinds of trauma, including those of terrorist attacks. They are the baseline of readiness, in my opinion, for any sort of capability to be prepared for the everyday type of terrorism that we can expect. Are they ready? Unfortunate--and could they meet the surge of 450 type victims that occurred at 9/11? I think the result-- the answer to that is no. We're not ready to be able to surge at that level the way trauma centers are set up today. Saving people--there are other studies the National Foundation for Trauma Care, which I was the founding member of the board, also did a study about a year and a half ago which showed that our overall preparedness with trauma centers is about C-minus, if you look at that, for being prepared in our trauma centers to surge to a terrorist event. Saving people from the brink of death, however, or from everyday trauma, even a terrorist attack, is costly and it's resources intensive but absolutely necessary. Our trauma care delivery system has several requirements all of which must be met. Coordinated trauma system care. I talked in the very beginning statement that got you off track, Mr. Shays, extemporaneously talked about our lack of a coordinated system across our country. It is a very patchwork quilt of system currently and it needs to be organized. The work force issues. Trauma surgeons are in great debt. We have a tremendous lack of trauma surgeons. Over half of our surgery--of our trauma fellowships go unfilled, we have no nurses. We have--if you more than regionalize trauma care there are not as many neurosurgeons in America today as there are emergency rooms in America today. There is not one--if they stayed in the house all the time, lived there, were chained there, could not leave, there aren't as many neurosurgeons in America as there are emergency rooms. Workforce shortage is going to be something that you--that we'll be facing dramatically going forward. Trauma centers have to have sufficient resources to care for all their victims and to do the cost shifting it takes to take care of the uncompensated care and prepare for them. We must be prepared for the trauma that we see every day. Jason Hong gets shot in the leg on an everyday basis. We need to be prepared for the catastrophic events, the bridge collapses that occurred in Minnesota. We need to prepare for national disasters whether they are Katrina level or just earthquakes or tornados. And we need to be prepared for the major events that could occur from terrorism, which I think are more likely to be bombing in a cafe than they are an anthrax attack or some major bio event, I think is much more likely. So trauma centers are threatened by that. The effects of the Medicaid changes will be dramatic in our hospital. It is estimated it will cost us--let me see. Medicaid regulations is not something--it will be $36 million from our hospital. It currently costs about $4\1/2\ million of infrastructure to keep the trauma center alive. And we use about $13 million in costs in uncompensated care. Add to that $36 million our trauma center will go under. We will not be a part of the infrastructure for health care in our part of the region. We serve western--all of western North Carolina. So with that I'll truncate my remarks and thank you for this. I just beg you to stop the Medicaid cuts and enact H.R. 5613, the Dingell-Murphy bill, fully funded the trauma systems planning program and ensure maintenance of systems and adequately fund H.R. 5942, the Towns-Burgess-Waxman-Blackburn legislation, and fully fund the hospital preparedness program and hospital partnership grants to ensure the highest level of preparedness, funding for all hospitals and most particularly for trauma centers. I want to thank the committee for having these hearings and to thank you for having me participate in them. [The prepared statement of Dr. Meredith follows:] [GRAPHIC] [TIFF OMITTED] T5290.030 [GRAPHIC] [TIFF OMITTED] T5290.031 [GRAPHIC] [TIFF OMITTED] T5290.032 [GRAPHIC] [TIFF OMITTED] T5290.033 [GRAPHIC] [TIFF OMITTED] T5290.034 [GRAPHIC] [TIFF OMITTED] T5290.035 Chairman Waxman. Thank you very much, Dr. Meredith. Dr. Welch. STATEMENT OF COLLEEN CONWAY-WELCH, PH.D. Dr. Conway-Welch. Good morning. My name is Colleen Conway- Welch. I've been dean at the School of Nursing at Vanderbilt for 24 years. Chairman Waxman. Would you pull the mic just a little closer? You don't have to move closer, pull the mike closer. Dr. Conway-Welch. Thank you. Over the last decade, however, I have taken a special interest in the area of emergency preparedness. I am here today to make the link between the consequences of reduced Medicaid funding, a fragmented public health infrastructure, and a reduced level of emergency preparedness, and to urge the committee to recommend a moratorium on these actions until at least March 2009. I want to make three specific points about implementation of the following three changes, limiting Medicaid payments to public providers only, dropping Medicaid funding for graduate medical education and limiting Medicaid dollars for services in out patient settings. If the changes anticipated for May 26th occur, it will be virtually impossible to fix these rules legislatively in a rushed and piecemeal manner. And DHHS will be hard pressed to effectively respond HSPD 21, which directs the Department to look at regulations that impact emergency preparedness. If Medicaid dollars are reduced in these three areas, a reduction in personnel and readiness will occur in our hospitals and emergency departments across the country and, even worse, it will occur in the midst of a serious and intractable nursing and nursing faculty shortage and limit our ability to respond to a disaster, particularly a blast or explosive injury with serious burns. It is also reasonable to assume that States, including Tennessee, will not hold the providers harmless if Federal matching funds are lost. There would be no easy way to redirect or make up money to those who are losing it, such as the medical schools and safety net provider hospitals. Even if the State were able to redirect State dollars to areas eligible for a Federal match, those funds would most likely be distributed in Tennessee to the managed care organizations and then be part of the overall payment structure of all of our hospitals. I want to speak now specifically to the three changes. No. 1, limiting payment only to providers who are a unit of government puts our rural, community, private, and 501(c)(3) hospitals at even greater risk since they must already pick up the slack of escalating numbers of uncompensated care and are tied to a public health infrastructure that is increasingly unfunded, unavailable and marginally functional. In Tennessee this would result in only one hospital, Nashville Metro General Hospital, being included. The TennCare Medicaid program would lose over $200 million per year in matching funds. This would put all of the hospitals in Tennessee, except Metro General, in a position of cost shifting and service reductions, as well as limiting access even further. For example, Vanderbilt already provides more than $240 million a year in uncompensated care. While I'm discussing Tennessee, these are issues across the country. All disasters are local, that is true, and conventional explosive attacks are especially local. The casualties are immediate and nobody should expect outside help for at least 24 hours. Only a true system of local, functional, systematically linked emergency departments and hospitals can address the casualties of this most probable form of attack. Proposal two, eliminating Federal support for graduate medical education programs will result in a reduction of medical residents in a wide variety of settings, including ERs, trauma burn and intensive care units. They will also not have the support of my skilled trauma nurses since these numbers will be reduced as well. As an example, in Tennessee the four medical schools in the State would lose $32 million annually. These schools also serve as the safety net providers and would be forced to reduce their numbers of students. Proposal three, limiting the amount and scope of Medicaid payment for outpatient services will weaken our ER ability to handle a surge of victims. Our large hospitals will quickly experience automobile gridlock. It is also absurd to think about evacuating hospitals in a time of disaster with the high acuity level we maintain every single day, including patients on ventilators. At Vanderbilt, for example, the burn unit and the ICUs are already at capacity. If disaster hits, health care providers will need to be dispatched to community and rural clinics to help them care for patients with serious injuries who cannot be transported or accommodated by hospitals. As clinics, we do services and personnel commensurate with reduced Medicaid dollars. Their ability to avoid triage and care to patients will be significantly impacted. Federal disaster preparedness money that comes to Tennessee is much appreciated. However, Federal money does not require an outcome of increased documented operational capacity building and it should. Tabletop exercises are marginally useful, are an income opportunity for Beltway bandits. However, lessons learned from one exercise are not necessarily applied to the next. To many health care professionals of both political parties in the field of emergency preparedness, it appears that DHHS and DHS do not have a mechanism to assess and monitor the extent to which States, counties and cities have the capability and game plan in place to respond to a disaster such as a blast explosion and are not able to provide guidance on which to base these plans. There is no one place anywhere in our Nation or at any level of government where one can go to receive reliable information on resources; for example, how many burn beds there are in Tennessee or how many ICU beds there are in Nevada. There is no one-stop shop to answer it on a Federal level and disasters are frequently not limited to one State. So regional statistics and information are needed. For example, Tennessee has 48 burn beds, 28 of which are at Vanderbilt and the eight Southeast States have a total of 240, but I had to go to the American Burn Association to get those numbers. In summary, I am encouraging a moratorium on these Medicaid changes, a requirement that coordination between and among various Federal, State and local entities be enhanced to achieve a double whammy; namely, improving emergency preparedness response while improving the fractured public health infrastructure. It is important to point out that continued cuts to providers negatively impact every service a hospital provides. Vanderbilt has historically soaked up these reductions and looked for other sources of revenue, but that is becoming more and more difficult. It is logical to assume that we would have to cut such programs as helicopter transport, HIV/AIDS programs and certain medical and surgical specialties, including emergency preparedness. We now support emergency preparedness in a robust way, but we would need to limit our participation and regional drills and internal administrative planning, as well as reduce our commitment or eliminate stockpiling of medical supplies and equipment that are critical. In conclusion, please extend the moratorium until next year. Charge DHHS and DHS to thoughtfully work together to address the declining public health infrastructure from the prospective of improving our emergency preparedness, and urge that the rules be withdrawn since Congress did not direct their propagation. A simple and immediate cut in Medicaid funding to these three areas is not a thoughtful solution, will not work and will have a devastating effect on our hospitals and providers to respond in a disaster. In the final analysis if these rules are enacted as proposed when our citizens need us most, we will not be there. Thank you. [The prepared statement of Ms. Conway-Welch follows:] [GRAPHIC] [TIFF OMITTED] T5290.036 [GRAPHIC] [TIFF OMITTED] T5290.037 [GRAPHIC] [TIFF OMITTED] T5290.038 [GRAPHIC] [TIFF OMITTED] T5290.039 [GRAPHIC] [TIFF OMITTED] T5290.040 [GRAPHIC] [TIFF OMITTED] T5290.041 [GRAPHIC] [TIFF OMITTED] T5290.042 [GRAPHIC] [TIFF OMITTED] T5290.043 [GRAPHIC] [TIFF OMITTED] T5290.044 [GRAPHIC] [TIFF OMITTED] T5290.045 [GRAPHIC] [TIFF OMITTED] T5290.046 Chairman Waxman. Thank you very much, Dr. Welch. Dr. Lewis. STATEMENT OF ROGER LEWIS, M.D., PH.D. Dr. Lewis. Mr. Chairman, members of the committee, thank you for inviting me. My name is Roger Lewis. I'm a professor and attending physician at the Department of Emergency Medicine at Harbor-UCLA Medical Center, and I've been working as a physician at that hospital since 1987. Harbor-UCLA Medical Center is a publicly funded Level 1 trauma center and a teaching hospital. We're also a federally funded disaster resource center and in that capacity work with eight of the surrounding community hospitals to ensure disaster preparedness and, in the event of a disaster, an effective disaster response serving a population of approximately 2 million people. We're proud of that work and believe it is important. Over the last 5 or 10 years my colleagues and I at Harbor- UCLA have witnessed an extraordinary increase in the demand for emergency care services of all types. We have seen an increasing volume in the number of patients who come to our emergency department and in their degree of illness and their need for care. At the same time we've had a constant decrease in our available inpatient hospital resources and this has predictably led to a frequent occurrence of emergency department gridlock and overcrowding. Patients wait hours to be seen, ambulances carrying sick individuals are diverted to hospitals that are farther away and admitted patients in the emergency may wait hours or days for an inpatient bed. Now I became an emergency physician because I wanted to be the kind of doctor that could treat anybody at the time of their greatest need. And similarly, my institution is proud of its work as a disaster resource center because it wants to be the kind of institution that can provide for the community as a whole in its time of greatest need. It never occurred to me during my training that I'd be in the position in which patients that I knew clearly needed to be treated in minutes instead had to wait for hours, that ambulances carrying sick patients would be diverted to hospitals farther away, or that we would pretend that hospitals that have no available beds and a full emergency department would have adequate surge capacity to respond to the most likely type of mass casualty incidents; namely, the results of a conventional explosive. Yet that is exact the situation in which we find ourselves. Now in trying to think about how to illustrate this situation several people suggested to me that I give an anecdote, that I tell a patient's story. And without detracting from the important examples that have been given by the other panel members, I would just like to comment that I don't think any single patient's story really captures the scope and the impact of the problem. This is the situation in which one has to think carefully about the meaning of the statistics that are widely available. In fact, yesterday's anecdote, those stories about individuals who deteriorate in the emergency department or on the way to the hospital because their ambulance has been diverted, are really today's norm. These events are happening every day. Right now an ambulance in this country is diverted from the closest hospital approximately once every minute. There is a common misconception that emergency department overcrowding is caused by misuse of an emergency department by patients who have routine illnesses or could be treated in urgent care settings. This is clearly not true. Numerous studies done by nonpartisan investigators have shown that only 14 percent of patients in the emergency department have routine illnesses that can be treated elsewhere. And much more importantly, those patients use a very small fraction of the emergency department resources and virtually never require an inpatient bed. Emergency department overcrowding is a direct result of inadequate and decreasing hospital inpatient capacity. It is a hospital problem, not an emergency department problem. There is a direct cause and effect relationship between the hospital resources, inpatient capacity, emergency department overcrowding and surge capacity. The hospital preparedness program, a federally funded program that is intended to increase disaster preparedness, has focused on bioterrorism and on the provision of supplies and equipment for participating hospitals. And whereas these things are important, they focus on one of the less probable types of mass casualty incidents and do not in any way directly address surge capacity. For my hospital the proposed Medicaid rules are estimated to result in a 9 percent decrease in the total funding for the institution. That would have an exponential effect on the degree of overcrowding and directly result in reductions in our inpatient capacity. For Los Angeles County as a whole the projected impact is $245 million. That would require a reduction to services equal to one acute care hospital and trauma center. We have already witnessed what happens in our area with the closure of such a hospital. So in summary, hospitals and emergency departments across the United States increasingly function over capacity and prior fiscal pressures have resulted in a reduction in the number of inpatient beds and overcrowding. Current Federal programs intended to enhance disaster response capability have emphasized supplies and equipment and it largely ignored surge capacity. The proposed Medicaid regulations will directly result in further reductions in hospital ED capacity and ironically specifically target the trauma centers, teaching hospitals and public institutions whose surge capacity we must maintain if they are to function at the time of a disaster. Thank you very much, Mr. Chairman. [The prepared statement of Dr. Lewis follows:] [GRAPHIC] [TIFF OMITTED] T5290.047 [GRAPHIC] [TIFF OMITTED] T5290.048 [GRAPHIC] [TIFF OMITTED] T5290.049 [GRAPHIC] [TIFF OMITTED] T5290.050 [GRAPHIC] [TIFF OMITTED] T5290.051 [GRAPHIC] [TIFF OMITTED] T5290.052 [GRAPHIC] [TIFF OMITTED] T5290.053 [GRAPHIC] [TIFF OMITTED] T5290.054 [GRAPHIC] [TIFF OMITTED] T5290.055 [GRAPHIC] [TIFF OMITTED] T5290.056 [GRAPHIC] [TIFF OMITTED] T5290.057 [GRAPHIC] [TIFF OMITTED] T5290.058 [GRAPHIC] [TIFF OMITTED] T5290.059 [GRAPHIC] [TIFF OMITTED] T5290.060 Chairman Waxman. Thank you very much, Dr. Lewis. Dr. Kaplowitz. STATEMENT OF LISA KAPLOWITZ, M.D. Dr. Kaplowitz. Good morning Mr. Chairman, members of the committee. I'm Lisa Kaplowitz. I'm deputy commissioner for emergency preparedness and response for Virginia Department of Health. In that role, I'm responsible for both the public health and health care response to any emergency. And we take a very all-hazards approach to emergencies in Virginia. Virginia is large and diverse and has been impacted by any number of emergencies since 9/11. Certainly we were impacted by the Pentagon, which is located within Arlington County, but we have experienced the anthrax attack, sniper episode, Virginia Tech and multiple weather emergencies. A few lessons from 9/11. First of all, this truly was a mass fatality event, not really a mass casualty event. But we certainly have learned that one key to response is coordination of all the health care facilities in the area, cross borders in the national capital region; that's Virginia, Washington, DC, and Maryland. And we all need to work together, both in the NCR and throughout the Commonwealth. We knew we needed a much improved communication system among health care facilities and with public health communications really was inadequate during 9/11. We had no back-up communications present. We needed a mass fatality plan, and we needed to include mental health planning in all emergency planning. The Congress allocated funds for both public health and health care preparedness as a result of 9/11 and anthrax. I won't spend a lot of time on the public health preparedness-- I'm responsible for that--except to mention that we have coordinated our public health and health care response. They work very closely together. In terms of our health care system preparedness, the key to our success has been partnership with the hospital association which contracts with hospitals throughout the Commonwealth, and we got buy-in from the hospitals very quickly. We also do regional planning. We have three hospital planning regions, a hospital coordinator and a regional coordinating center for each of our regions. The funding from ASPR has been very, very valuable. It's enabled us to purchase redundant communication systems for hospitals, to develop a statewide Web based tracking system. We can now track beds in a realtime basis throughout the Commonwealth during any emergency. We've purchased supplies and equipment often done on a regional or statewide basis. This has included portable facilities that are located in four regions of the Commonwealth and can be moved all around. We've purchased ventilators that are the same ventilators statewide that are being used in hospitals so people know how to use them. We've purchased over 300 ventilators for use in a surge. We've purchased antivirals and antibiotic medication located in hospitals. And we've developed a volunteer management system. Before I move on to trauma and burn care systems, I do want to say that the ASPR funds are very valuable but are only a fraction of hospital funding for emergency response. The trauma system in Virginia was established in 1980. We now have five Level 1 trauma centers, three Level 2 and five Level 3 centers in the Commonwealth. We have three burn centers, for a total of 37 burn beds within the Commonwealth. Our general assembly did a study in 2004 documenting a large amount of unreimbursed trauma care. In 2003, it amounted to over $44 million, and I know it's vastly greater than that 5 years later. As a result of this study, the general assembly did create a trauma fund which helps with our reimbursed care but, again, only provides a fraction of unreimbursed care. It's based on fees for reinstatement of driver's license and DUI violations. I do want to talk a little bit about lessons learned from Virginia Tech. Nobody expected to have a shooting event, a mass shooting event in rural Virginia, such as occurred a year ago. What many people don't realize is that, because of the winds and the snow, none of the injured could be transported to a Level 1 trauma center or even a Level 2 trauma center. The three closest hospitals, two were Level 3 trauma centers; one was not a designated trauma center. We had planned for this, recognizing that all facilities need the capability of handling trauma care. And we're very proud of the fact that none of the injured transported to hospitals from Norris Hall died. That's due to our coordination of EMS, as well as hospitals, public health and our regional coordinating center. So some of our lessons learned from Virginia Tech concerning mass trauma include the need for coordination of all parts of public health in the health care system. Cross training is key. This has been mentioned already. In a mass casualty event, all facilities need to be able to handle trauma care. That not only involves supplies but training of staff in all facilities. We have purchased supplies for all facilities in the Commonwealth to handle a certain level of trauma and burn care. We know that burn care will be key here, and we want all facilities to be able to handle that. And we need a real time patient tracking system which didn't exist, and we're working very closely on that now so that patients can be tracked from the time EMS picks them up until the time they're in the hospital and, unfortunately, for our chief medical examiner as well. We're very fortunate to have a very strong Medical Examiner's Office because this was a crime scene and had to be handled as a crime scene, and they handled it very well. We need to recognize that at any mass casualty event, there will be fatalities. So, in terms of trauma surge planning in Virginia, we've focused on a number of different aspects here: Again, as I mentioned, purchase of key supplies and medications for burn and trauma care in all facilities, and this has been very basic, looking at basic supplies to be stockpiled. Training of physicians and staff in all hospitals to provide basic trauma and burn care, because we don't know where trauma is going to occur, and we'll need the help of all our facilities. Training of EMS and hospital staff on appropriate triage. Unfortunately, during a mass casualty event, we won't have the luxury of transporting people to solely our trauma centers. But we're very dependent on these centers to have the expertise that they can then use to train others. And we need mass fatality planning as a component of mass casualty planning. I was asked to make a few comments about our recent tornadoes. We were fortunate; nobody died as a result of those tornadoes, and there were only three serious injuries. But I will say that there was excellent communication among the hospitals in the area. Once again, this was a very rural area. They communicated well. We called on our medical reserve corps to help. Our public health folks were available immediately and are working in the area now. So our planning has really paid off there. A few comments in summary. Hospital and health system emergency preparedness can be achieved only through close collaboration and regional planning efforts for public health and health care. There must be a system prepared to respond, especially for mass casualty and fatality events. Preparedness is tested not only through exercises but through actual events. We do an after-action report for every single event and take our lessons learned to modify our plans. A coordinated trauma system is essential, but we have to have a well thought out trauma and health care surge plan to effectively respond to large-scale events. Trauma care provided only through designated trauma centers will not be adequate, but we need those centers as resources to train others. We desperately need continued Federal funding for public health and health care preparedness. Our CDC and ASPR funds have been very valuable, but I need to point out that it's only a fraction of the moneys used for preparedness. It's a relatively small amount in the Commonwealth. It doesn't even come close to covering, for example, unreimbursed care, and it's not for operational funding. But it has been very valuable, and I plead with you not to have further cuts in either CDC or ASPR funding. Thank you again for the opportunity to share Virginia's plans, challenges and accomplishments, and I'll be glad to answer questions. [The prepared statement of Dr. Kaplowitz follows:] [GRAPHIC] [TIFF OMITTED] T5290.061 [GRAPHIC] [TIFF OMITTED] T5290.062 [GRAPHIC] [TIFF OMITTED] T5290.063 [GRAPHIC] [TIFF OMITTED] T5290.064 [GRAPHIC] [TIFF OMITTED] T5290.065 [GRAPHIC] [TIFF OMITTED] T5290.066 [GRAPHIC] [TIFF OMITTED] T5290.067 [GRAPHIC] [TIFF OMITTED] T5290.068 [GRAPHIC] [TIFF OMITTED] T5290.069 Chairman Waxman. Thank you very much. We're going to proceed with questions. Ten minutes will be controlled by the majority; 10 minutes controlled by the minority; and then we'll go right to the 5-minute rule. But before I even begin questions, let me just get for the record something that I'm not sure I fully understand. Dr. Kaplowitz, what is a Level 1 trauma center? What is a Level 2 trauma center? What is an emergency room? How do these all fit in as you plan for emergency preparedness? Dr. Kaplowitz. Well, actually, many people on the panel are better able to discuss the differences of Level 1, 2 and 3. Level 1 trauma centers require expertise to be present within the fatality all the time, to be able to handle any level of trauma. Level 2 and Level 3, some of that expertise can be outside the facility but available very quickly. So, again, Level 1 trauma centers have tremendous costs just to maintain that ability to provide trauma care. And that's a big part of what costs a great deal to maintain trauma centers. It's not only the care per se, but the infrastructure as well as a quality improvement plan, which we have a very good one in Virginia. Emergency rooms are places where people can show up for emergency care in any facility, whether they're a designated trauma center or not. I will say that there are fewer and fewer designated trauma centers in the Commonwealth because of the cost to maintain a trauma center. It's been very, very difficult and becoming more and more expensive, and that's been very problematic. Chairman Waxman. Thank you very much. As I indicated in my opening statement, we asked the staff to do a survey of emergency care capacity in seven U.S. cities. At the time of the survey, none of the 34 Level 1 trauma centers that participated had enough treatment spaces in their emergency rooms to handle the victims of a terrorist attack like the one that happened in Madrid in 2004. In fact, more than half of the ERs were already operating above capacity. That means, on an average day, patients were already being treated in hallways, waiting rooms and administrative offices. Dr. Meredith, should the findings in this survey be of concerns to Americans? Dr. Meredith. Yes, sir. I think the capacity available today in our safety net hospitals is a problem, it is a threat. If you think about a bottle-neck theory, the patients are building up in the emergency departments, not because there's so many patients coming to them who shouldn't be there but because there's no place for them to go. The ability for our hospitals to absorb them just in terms of numbers of beds and numbers of doctors that take care of patients is lacking. And that's what's causing this emergency department overflow overloading and buildup. And the other pieces, one of the strategies is to move patients around, but as several of the other people on our panel have said, most of the kinds of patients that are occupying intensive care unit beds, ventilator beds, burn unit beds are not going to be very easily moved. They will be very difficult to move. And to move them from the Level 1 trauma centers and the burn units to other facilities is probably not the best way to manage them. So it's a problem. Chairman Waxman. It's been over 6 years since we suffered the attacks on 9/11. Are our emergency rooms prepared to handle the surge of victims that could result from a terrorist attack? Dr. Meredith. If you just--no, sir. I will just tell you from going to trauma center to trauma center, and I've been in a lot of them, there is very little surge capacity available in the trauma centers in the safety net hospitals in our country today. Chairman Waxman. One of the striking findings of the survey is how overcrowded emergency rooms are on a normal day. This day, when our staff called the trauma centers and emergency rooms in the major cities, was just an ordinary day, and they were already over capacity. They had to treat patients in hallways and waiting rooms. I would like to ask, is overcrowding in emergency rooms jeopardizing the health of patients and the ability of hospitals to provide the best care possible? Dr. Lewis. Dr. Lewis. First of all, the day that survey was conducted was a typical day, at least in Los Angeles. During that week in the prior 4 days we had been on diversion--I'm sorry, in the prior week, we had been on diversion for more than the equivalent of 4 days. So that was a typical situation. It absolutely negatively impacts the availability of the emergency department resources and the ability of patients to receive care for emergent medical conditions. There are delays in treating patients with chest pains, patients with potentially important infections and with a wide variety of illnesses and injuries. Chairman Waxman. Well, the ability to respond to a bombing, such as occurred in Madrid, is called surge capacity. Surge capacity depends on more than just the emergency room. A hospital needs enough resources in places like the intensive care unit and hospital beds. But in the survey by committee staff, the problems extended beyond the emergency room. One major problem is something called boarding. Could you tell us, Dr. Lewis, what is boarding, and what impact does this have on emergency room abilities to deal with a surge? Dr. Lewis. Mr. Chairman the term boarding refers to the holding of a patient. Chairman Waxman. Is your mic on? Dr. Lewis. Yes, it is. The term boarding refers to the use of emergency department treatment spaces for the holding of patients who are ill enough to require admission to the hospital, whose emergency care has been completed, they have been stabilized, and who the decision has been made to admit them into the hospital but there is no room in the hospital to treat that patient. Boarding has a number of important effects. The two most important effects are a reduction in the quality of care for that individual patient, because they are not receiving the ICU care in a comfortable and streamlined environment. But more importantly from my point of view and the purpose of this hearing is it reduces the total effective capacity of that emergency department. On a typical day in my emergency department, for example, one-quarter or as much as a third of the treatment spaces and the most intensive treatment spaces may be taken up by a boarder once we get to the afternoon hours, and that reduces the effective size of my emergency department by that percentage. Chairman Waxman. Well, what happened in Madrid was a terrorist bombing, just a bombing, and not a--when I say ``just a bombing,'' not weapons of mass destruction or anything catastrophic other than what a terrorist attack using bombs can produce; 89 patients needed to be hospitalized, and 20 needed critical care. But not one of the hospitals surveyed had that many in-patient beds or critical care beds. In fact, the average hospital surveyed only had five intensive care unit beds, just a fraction of the 29 critical care beds needed in Madrid. Six hospitals had no ICU beds at all. Dr. Lewis and Dr. Conway-Welsh, are you concerned about these findings? Dr. Lewis. Obviously I'm concerned about the findings. One of the comments that's made in response to data like that is this idea that many of those patients could be rapidly moved out of the hospital in the event of an unexpected and catastrophic event. But, in fact, the information on intensive care unit availability is particularly problematic because those are patients that are too ill even to be in the normal treatment area of the hospital. So, as was mentioned by some of my colleagues, those patients are virtually impossible to move out. And so those spaces if they are used are truly encumbered and will not be available even in the setting of a mass casualty incident. Dr. Welsh. Dr. Conway-Welsh. There is another issue to that as well, and that is automobile gridlock. Many of our emergency rooms have not been designed to handle a large influx of private vehicles, which is what would happen. And I know, at Vanderbilt, if we got 50 cars lined up for our ER, that's it. I mean, they're not going anywhere. So I think that the gridlock issue as a concern for our emergency rooms is also very real. I think Dr. Lewis made an important point when he said that the ER overcrowding, if you will, is actually a hospital problem. And I believe that is absolutely correct. And we're trying to fix something piecemeal when there's much larger problems, of which you are well aware, that really need to be addressed in a coordinated fashion by DHS and DHHS. Chairman Waxman. Could you expand on that? Dr. Conway-Welsh. Well, the role of coordination and guidance among those two offices is, frankly, very murky. And there is--if we recall the problems that happened with Katrina, it was sort of a right hand not knowing what the left hand was doing. There was, frankly, nobody to step in as a parent and say, you will play well in the sand box, you will get this done. And there was a lot of uproar between it's a State issue or a Federal issue or a city issue. That simply has to be stopped. Chairman Waxman. It's been suggested that all of these things are supposed to be handled at the local level. The State ought to be able to coordinate emergency services. The hospitals ought to be prepared for whatever needs they might have. Some people have said that it won't really matter whether a hospital ER is operating way above capacity or even under diversion. If a bombing occurs and there are hundreds of casualties need immediate care, then the hospital will simply clear out all patients who don't have life-threatening conditions. And if a local ER somehow can't create enough capacity, then care will be available in neighboring hospitals, in nearby communities or from emergency response teams deployed by the Federal Government. I wonder, is this grounded in reality, or is this an exercise in denial about the lack of emergency care surge capacity at the cities at the highest risk of a terrorist attack? Whichever one of you wants to respond. Dr. Conway-Welsh. I think Tennessee accepts the responsibility that we must care for our own citizens. Frequently there are, particularly with blast explosions that can occur across State lines. Something else that is a real problem is that, for instance, the National Guard, which would be called up, they wouldn't get there immediately, but they would be called up, rely on the hospitals for a large part of their plans for response. Chairman Waxman. Before my time is expired, let me just ask one last question. We talked about whether we're prepared and what the consequences would be for Medicaid funding to the States. Medicaid, of course, is health care for the very poor. Whether people agree or not about this particular issue on the Medicaid regulations, it will reduce Federal Medicaid revenues to Level 1 trauma centers and other hospitals throughout the country. Now, when that loss of Federal funds, which probably will vary from hospital to hospital, and for some Level 1 trauma centers, will these losses be substantial, forcing reductions in services and degrading emergency response capacity? Dr. Meredith. Dr. Meredith. Without question, that is one of my greatest fears as a result of this, is that the trauma centers which serve as the nucleus for this preparedness piece and for the problems that occur every day, every car wreck, the No. 1 killer of Americans under the age of 44, will not be able to survive without--if they have this much drop loss to their bottom line, they won't be able to do the things it takes to be able to be ready on an every day basis, much less be able to participate in any sort of surge. And that is frightening to me as a trauma surgeon. Chairman Waxman. Thank you very much. Mr. Shays. Mr. Shays. Thank you very much, Mr. Chairman. Dr. Lewis, are you familiar with research conducted at Johns Hopkins University and published in the Society for Academic Emergency Medicine that found there are key differences between daily surge capacity and catastrophic surge capacity? Specifically the research found that, quote, daily surge is predominantly an economic hospital-based issue with much of the problem related to in-patient capacity but with the consequences concentrated in the emergency department. By contrast, catastrophic surge has significantly more components. Do you agree with the statement? Dr. Lewis. I agree with the statement, absolutely. The point that was being made---- Mr. Shays. Translate. Give me some meaning to this. Tell me what it means. Dr. Lewis. I think the distinction that's being made has to do with the ability of the hospital to respond to every day fluctuations in the need for care. For example, when there's a multi-car vehicle incident on the 405, and many of the hospitals in Los Angeles County have difficulty responding to those things but are able to respond by bringing in overtime staff, bringing in staff that aren't usually covered by the budget but for this one time can be brought in to open up beds that although physically available are not covered by nursing staff, those kinds of thing. However, doing that on a day-to- day basis over a fiscal year drives the hospital into the red. And so there are economic constraints on our ability to deal with so-called daily surge. In the setting of a mass casualty incident or a disaster surge, obviously there are some extraordinary things that would be done. I think the critical question is the extent with which those critical things could be done and how effective they would be given the number of acutely ill patients who in fact could not be moved out of the hospital. Mr. Shays. Thank you. Dr. Meredith, did you want to comment on it? You just seemed to light up a bit. Dr. Meredith. Well, I think there is a lot--that's exactly right, and there's a lot of truth to that. You're much more able to lift a 300-pound weight if it's on your foot than you can if it's just sitting in the room. So we are able to be able to surge differently for an emergency and for a short period of time than you can do for a long period of time. There's also a disproportionate availability of bed capacity in our hospitals between the big urban and the Level 1 trauma hospitals and the smaller rural hospitals so that if you just look at the overall bed capacity over the country, it's mismatched between where these would occur, where the capacity is and so forth. Mr. Shays. Mr. Chairman, I would request unanimous consent that the following articles published in the Society for Academic Emergency Medicine be entered into the record. There are 1, 2, 3, 4 of them. And I have them listed here if I could. Chairman Waxman. Without objection, they will be entered in the record. [The information referred to follows:] [GRAPHIC] [TIFF OMITTED] T5290.070 [GRAPHIC] [TIFF OMITTED] T5290.071 [GRAPHIC] [TIFF OMITTED] T5290.072 [GRAPHIC] [TIFF OMITTED] T5290.073 [GRAPHIC] [TIFF OMITTED] T5290.074 [GRAPHIC] [TIFF OMITTED] T5290.075 [GRAPHIC] [TIFF OMITTED] T5290.076 [GRAPHIC] [TIFF OMITTED] T5290.077 [GRAPHIC] [TIFF OMITTED] T5290.078 [GRAPHIC] [TIFF OMITTED] T5290.079 [GRAPHIC] [TIFF OMITTED] T5290.080 [GRAPHIC] [TIFF OMITTED] T5290.081 [GRAPHIC] [TIFF OMITTED] T5290.082 [GRAPHIC] [TIFF OMITTED] T5290.083 [GRAPHIC] [TIFF OMITTED] T5290.084 [GRAPHIC] [TIFF OMITTED] T5290.085 Mr. Shays. Thank you very much. Dr. Hoffman, I find it nonsensical that we talk about the capacity in emergency centers and so on, that we are strained, when particularly in California my sense is that a lot of this deals with the uncompensated care, not the undocumented worker because that doesn't describe them. It's individuals who are literally here illegally. Is there any sense of a disconnect when we say we are providing national security for our homeland when in fact we allow individuals to literally come into this country at will, then call them undocumented, as if somehow they don't represent a national security issue? Mr. Hoffman. Well, Congressman, it's an issue somewhat outside of my ken. In looking at the terrorist threat, I would say, when one focuses back on 9/11, all of the 19 hijackers entered the country, firstly, legally and withproper documentation. So certainly you're right in pointing to the threat that illegal aliens and undocumented people have, but I think the threat is even much wider than that. Mr. Shays. But isn't it the responsibility of the National Government to defend its borders. And we have a visa process and so on that let's us know who is here and who is not. People here illegally are here without our knowledge. Doesn't that strike you as somewhat absurd to then suggest that we have the capability to deal with a potential terrorist threat? Mr. Hoffman. I think the lesson that 9/11 teaches us is that we have to have the kind of dynamic and flexible approach that can deal at multiple levels. Mr. Shays. Let me ask you, those in the hospital, how is it that we need to be able to deal with a surge capacity when we are dealing in a sense with a surge of illegal immigrants? How do we sort that out? How does that fit into the equation? Isn't it a fact that illegal residents tend to use the emergency facilities of a hospital more than just knocking on--going through the regular process of interacting with a doctor? Unless we have, and we have expanded our community-based health care clinics, but without community-based health care--let me ask it this way. Aren't these facilities being overworked by the fact that we have illegal residents who are using these facilities? Dr. Lewis. It is not my impression that any significant part of the overcrowding or the use of the resources is directly tied to the illegal immigrants who work in Los Angeles County. Mr. Shays. How would you know that? Do you find out if they're here illegally? Dr. Lewis. One often finds out when one is taking a social history and asking about family background, travel history, that sort of thing. Mr. Shays. So you're under oath right now, and you're saying that, under oath, you do not believe that you have an overuse of these facilities by people who have no other ability to have health care, and that this is not in any way caused by illegal immigrants? Dr. Lewis. Let me just ask a clarifying question. When you use the term ``overuse,'' do you mean any use? Mr. Shays. Any use. Dr. Lewis. If you define any use of our emergency department by people who are in the country illegally, the answer is, absolutely, there is such use. If you mean overuse in the sense that the use is disproportionate because of their illegal status, I believe the answer is no. Mr. Shays. I actually mean both. Why wouldn't it be? Logically it would seem to me to make sense that if they had nowhere else to go, they're going to go to the hospital. That's what we are encountering on our side in the East Coast. Every hospital tells me that you have an overuse in our emergency wards by people who simply have no other place to go. Dr. Lewis. I think that we're mixing a couple of different distinctions. My impression, and I have not collected data on this and I'm not prepared to give you numbers, is that most of the illegal immigrants when they have nonurgent medical conditions choose to seek care in a variety of outpatient facilities that are scattered around the city, and they don't actually want to come to the emergency department. The second, if I could just answer the second part of your question. Mr. Shays. Make it shorter, though, please. Dr. Lewis. When you are told that a significant burden on the system is by people who have nowhere else to go, the majority of those people are legal residents or citizens of this country who have no place else to go because they don't have health insurance, not because of their legal status. Mr. Shays. Thank you. I yield the balance of my time. Mr. Issa. Thank you. Dr. Lewis, I'll followup in this same area. And I agree with you as a fellow Californian that we can't have it both ways. We can't say that the uninsured seek emergency room care disproportionately because they can go there, they essentially are covered by the umbrella of last resort because they're poor and uninsured, and then not use the term broadly uninsured rather than illegal versus legal, etc. So, although I think illegal represents more than perhaps you're saying, I think it is appropriate, at least in California, to look at it in terms of the uninsured using the emergency room as essentially the guaranteed insured area for the poor and uninsured. I'm concerned about this survey that was done. You participated in the survey. And UCLA Medical Center that day said that there were 14 patients boarded by the emergency department presumably waiting for in-patient beds to become available. How do you explain the fact that you had 14 in- patient beds available that same day? Wouldn't it be fair to assume that, to a certain extent, you could have made them all, you could have put them all in immediately if you gave them the highest priority? And rather, quite frankly, there has to be some credibility to the reserve for higher-paying accounts, wouldn't be that correct? Dr. Lewis. No. Mr. Issa. So you're saying that you had 14 boarded patients and you had 48 in-patient beds available and that--I'm trying to understand. Clearly you had beds available, and you could have shifted people into them, isn't that correct? Dr. Lewis. I believe that you are making a common misinterpretation of the information that was given to you, and I've seen the same information. It has to do with how one defines an available bed. To a hospital administrator, an available bed is a bed that is physically there; you walk in the room, there is a bed, and there is no patient in it. Mr. Issa. OK. So as a followup, what you're saying is you were not staffed to put people into those beds? Dr. Lewis. That's a very important distinction because the staffing is directly related to the level of hospital resources. Mr. Issa. And I just would like to followup. Chairman Waxman. The gentleman's time is up, but did you complete your answer? Dr. Lewis. No. I was trying to make the point that the issue has to do with staffing. And therefore, when one is trying to get data on the number of available beds, especially in the setting of disaster preparedness, the important question is what number of beds are available or could be staffed in the next few hours. And I don't believe the questionnaire was clear in that regard. Mr. Issa. Mr. Chairman, I know you went on for a little while. This will be very short. Chairman Waxman. The gentleman's time is expired. Ms. Watson. Ms. Watson. Mr. Chairman, I think some of the questions that are being asked of the witnesses ought to be asked of the Members sitting up here who make the policy. Dr. Lewis, I am so glad you're here. I am intimately familiar with the situation down in Watts, CA, and Martin Luther King Hospital. And when that hospital's Medicare funds were pulled and Medicaid funds were reduced, many of the patients that would have gone to King had to come to surrounding hospitals. They're overcrowded. And I know on the day of the survey, 33 of your ER patients were being treated in chairs or hallways. I have been in that situation myself in one of our most prominent hospitals waiting 2 hours and 15 minutes, and people had been there for 4 days. We have a critical problem in our community, in our county hospital system. And we probably have one of the largest ones in the State in the Los Angeles area. The day we took this survey, was that an unusual day for your hospital? Dr. Lewis. In reviewing the numbers, and I should clarify that I was not working that day, but in reviewing the numbers that were submitted, my impression was that was a slightly less busy than usual day. It was done on a weekday. Ms. Watson. Now, Saint Francis Hospital, you're aware of it? Dr. Lewis. Yes. Ms. Watson. Is a DSH hospital, and it, too, is complaining--Doctors Hospital. I can name all the hospitals in the area. I chaired the Health and Human Services Committee in Sacramento in the Senate for 17 years. I am intimately aware of our problem. What is it that we need to have a functional and comprehensive care system for the indigent? And I know you're not in the business of doing the work of immigration officials and seeking; you treat people as needed. What would you want to see in this Los Angeles County area, and maybe some of the rest of you in other States would want to respond, too, that would make our system viable to care for the needy, to care for the people who come through your doors, regardless of whether they're there legally or illegally? Dr. Lewis. If I was limited to a single answer---- Ms. Watson. Yes. Dr. Lewis [continuing]. My answer would be an increase in the number of available in-patient beds in the hospital that are staffed by qualified nursing personnel who are available 24 hours, 7 days a week. Ms. Watson. When Dr. Levitt--thank you for your response. When Dr. Levitt cut the Medicare dollars from King, or from L.A. County, that was 50 percent of the resources. So it impacted all of not only the county hospitals but private hospitals as well. Staffing of emergency personnel, what would you like to see there, and you talked about other beds, but emergency and trauma? Dr. Lewis. The most pressing shortage that we have right now in Los Angeles County is related to nurses in the emergency department. There's a nationwide nursing shortage. The working conditions and the stress level in the emergency department makes it not a popular long-term career choice for the best nurses. And that is the most pressing immediate personnel need that we have. Ms. Watson. OK. How do we solve that problem, and I will ask that of all of the witnesses? Dr. Welsh. Dr. Conway-Welsh. I have several suggestions. The amount of Federal dollars that are available for nurses to go back to school and to become either BSNs or masters-prepared nurses is very, very limited. The faculty scholarship program is very, very limited. Let me take a little bit different cut though on your question about what could be done. The School of Nursing at Vanderbilt has just received status as a clinic, a nurse-run faculty clinic, as an FQHC. That process took us almost 10 years to be designated as an FQHC. There are schools of nursing all over this country that close their clinics once their education dollars run out from HRSA because they can't maintain it because all of our patients are indigent and poor. An increase in the amount of FQHC support would be extremely helpful. And then the last point I might make is that we have many, many nurse practitioners who are not able to practice in the full scope of their practice because of State problems with the Medical Practice Act and the Nurse Practice Act. We need a Federal preemption that would allow the current nurse practitioners to practice in the full scope of practice. The other thing that we need to do is nurses are hunters and gatherers in hospitals. There's 30 to 40 percent of what they do that they shouldn't be doing. But the system doesn't allow them to give that up. There's not enough support of the non-nurse personnel for nurses to stop being hunters and gatherers. We would significantly address the nursing shortage in this country if we could just allow nurses to nurse and if we could fully utilize our nurse practitioners. Chairman Waxman. Thank you, Ms. Watson. Mr. Issa, you're now recognized for just 5 minutes. Mr. Issa. Thank you, Mr. Chairman. Can I ask unanimous consent to submit eight documents into the record that reflect the Commonwealth of Virginia's emergency response preparedness, both alone and in conjunction with the rest of the National Capital Region? Chairman Waxman. We'll review the documents before we're willing to give unanimous consent, and we'll see if we can get the unanimous consent. Mr. Issa. So you're reserving an objection? Chairman Waxman. I object until I get a chance to review the documents. Ms. Watson. Mr. Chairman can we see the documents, too? I don't want to vote unless I know what it is. Mr. Issa. Mr. Chairman, here are the documents. Dr. Lewis, because I ended the last round, I was just going to comment that in your own statement, you had said that you had surge capacity; you could bring in people that you wouldn't otherwise have, but it would put you into the red. And I'm not going to further elaborate because of the shortness of time, but if you have 48 beds and you don't fill them and 14 people say boarded, to me it sounds like you were unwilling to go into the red in order to board those people. But you did have 48 capacity, assuming those higher cost resources were available, but your hospital chose not to do it that day. Dr. Kaplowitz, I'm very intrigued by your testimony, these documents that are pending going into the record. If I understand you correctly, if there were a significant crash or something on the Orange Line or Blue Line today representing dozens or even maybe 100 significant injuries, you would be prepared to put together the resources to take care of that. Is that correct? Dr. Kaplowitz. We would be working very closely with the District of Columbia and Maryland in terms of appropriate distribution of patients working through EMS as well as the hospitals. We would activate our Northern Virginia coordinating hospital, which is at Innova Fairfax, and do the best we can for optimal distribution of patients. I can't tell you what would happen. You know, first of all, that could be anywhere. Mr. Issa. Sure, I understand on a given day that you can't answer. But in general, and we'll go back to Virginia Tech. Virginia Tech was an example of the worst of all worlds, a place you didn't expect it, a weather condition that wasn't cooperative and hospitals that generally were not prepared. And yet the response, looking back, you were able to rise using resources as you could transport people and/or--people one direction or the other. Is that correct? Dr. Kaplowitz. Virginia Tech was not truly a mass casualty event. It stressed rural hospitals. And we were prepared to pull in people. However, no hospital was pushed beyond what they were capable of doing and wasn't hundreds of people at the same time. Mr. Issa. And, Doctor, I know it's always unfair to do hypotheticals, but in general, the amount of times that America is going to be attacked in mass by a dirty bomb, chemical attack or aircraft from the sky, compared to the amount of time in which an airplane crashes as it is landing in Iowa, a DC-10, the Blue Line does have an electrical failure and people are damaged or burned, a gasoline truck on the 405 jackknives and bursts into flames, a fire in a refinery, such as Long Beach, a widespread hurricane or tornado that injures many; aren't all of these dramatically more likely? And I'll be self-serving and say, since it happens every year in America, every single year one or more of these, actually almost all of them happen at least once or twice a year, mass casualties occur every year in America. Isn't it true that, in fact, if we take the war on terror, the likelihood of another attack like 9/11 completely out of the scenario, that the need is greater in frequency and even likelihood of dozens or hundreds of people needing care, isn't it greater based on these? And I will throw in just one more for good measure, Dr. Lewis, an earthquake in Northridge? Dr. Meredith. Yes, it is, and we're not ready to deal with that. Whether you survive an injury in America today on Interstate 40 from Wilmington, NC, to Barstow, CA, depends on how well you get hurt and how well the trauma system is organized between those two points. Mr. Issa. And, Dr. Kaplowitz, I'm particularly intrigued because you seem to be positive in saying that, at least within the resources available, Northern Virginia and Virginia in general has done a good job of being prepared. And I'm particularly concerned because I'm a Californian, and it appears as though California feels they're not prepared. Could you comment further on why you feel fairly prepared within the resources available? Dr. Kaplowitz. Preparedness is all relative. We've put a great many things in place to go beyond where we were on 9/11. I can't tell you how we would handle hundreds, you know, whether people would be happy with how we handled hundreds. We would have a plan, a communication system. Mr. Issa. One final question for the panel. If I had a billion dollars sitting in the center of this room and I gave it to you for preparation, training for these mass events or I spread it around the country to staff up or reimburse Medicaid, which would you rather have that billion dollars go to, assuming there was only one pile of $1 billion available today? Dr. Kaplowitz. I would like to see our emergency departments and our capability, able to function on a daily basis. Because much as I've talked about surge, I also agree that if we don't do a better job on handling emergencies on a daily basis, we're going to be at a disadvantage when there is a mass casualty event. We have to be able to empty our emergency rooms more rapidly because that's going to be even more important in an emergency event. Again, I'm positive in terms of what we've put in place in the kinds of communications. However, I recognize full well the stresses on our emergency system on a daily basis, and we can't ignore that. They're interrelated. Mr. Issa. Mr. Chairman, I would appreciate it if the others could answer for the record which way they would spend the money or if you would like to give them additional time. Chairman Waxman. Well, whichever of you want to respond. Yes, Dr. Lewis. Dr. Lewis. I agree absolutely with what Dr. Kaplowitz said. But in addition, I would like to point out that even if one chose to spend the $1 billion on training and equipment and things that would only be used in those very unusual events that you pointed out, one of the key decisions is whether we want to be prepared for the most likely of those catastrophic events or whether we want to instead be prepared for the least likely, meaning bioterrorism or nerve agents. Mr. Issa. Good point. Dr. Conway-Welsh. I would take the $1 billion and apply it to the public health infrastructure in our country. That is critical to any kind of a response in any kind of a disaster. And we are in grave danger of a really crumbling public health infrastructure in our country. Dr. Meredith. You could fund the Federal infrastructure to support the States to develop trauma systems for $20 million or $10 million--million, million dollars. You know, you'll drop that on the way to work in the morning. So that should be done. The next piece is just to your question, Representative Issa, can we plan to surge on a daily basis and always be ready nationwide? I don't think that is do-able or the smart way to do it. But I do think we are not ready on a daily basis to do what we have to do every day. And that frightens me immensely because we're not prepared for the bomb in a cafe or the mall or a bus falling off a bridge because we don't have the capacity on the every day basis. Mr. Hoffman. This isn't exactly my expertise, but I would say that I agree completely with Dr. Lewis' statement. And I would point out that as unlikely as a terrorist attack may or may not be in the future of the United States, I think that the American people would expect that, years after 9/11, we would be prepared adequately to respond to any kind of threat like that. Chairman Waxman. Thank you. And of course, they would expect we're not going to make things worse by Medicaid cuts. Ms. Norton. Ms. Norton. Thank you, Mr. Chairman. And I must say, because I represent the city, I'm especially grateful that you brought some sunlight to this really urgent problem as we face Medicaid cuts. I want to note that I have constituents from Anacostia High School who would be very much affected if in fact there was such an event here. Mr. Chairman, since 9/11, I've been trying to get funds out for what are called ER-1. It was to be a demonstration here. People came from hospitals all over the country to see how we did it here and then to see if they could replicate it. And essentially it would add to the Metropolitan Hospital Center a surge capacity and a way to quickly add on that capacity. I want to--my concern, I will say to the panel, is that you have a mix of residents here. So if you try to separate out who you're talking about, undocumented, poor, who overuse, of course, emergency rooms from the ordinary emergency, you're going to have a hard time, which is why this ER-1 notion was to try to say this is the place, it is close to the Capitol, to send trauma victims. We have a burn center, for example. They brought people there from Virginia after 9/11. On top of 600,000 people who live here, we've got 200,000 Federal workers and other workers who just come in every day and go out, creating a potential for a true catastrophic situation. They won't be able to get out on the roads. Some of them will try to get out if they are hurt. So the point is to let them know quickly what the place is to go. Now, Virginia, and Dr. Kaplowitz you testified about what Virginia is trying to do with what money it had, and that caught my attention, placing key, according to your testimony, key supplies and medications in various places. Of course, Virginia went through 9/11 and trying to deal with surge in its various hospitals. I would like to ask you, and then that inclined me to look at how much in Medicaid funds Virginia would lose to see whether Medicaid funds were implicated. And I learned that Virginia--and when we talk about Virginia, Maryland and the District of Columbia, we're talking about one place virtually, except that if the event occurred here, unlike the Pentagon, if the event occurred here in this crowded space and people went to various hospitals, you would only make the situation worse, which is why we're working on this ER-1. The administration has supported it. We have not been able to get it through appropriations, even though they found considerable support for it. Virginia would lose $93 million in Federal Medicaid funds over the next 5 years. I'm trying to discern what impact the loss of Federal Medicaid funds would have on the surge capacity they're trying to create out of whole cloth. Dr. Kaplowitz. I've been thinking about that, knowing I was going to be here today. I know you've heard from Dr. Sheldon Retchin, who spoke about the impact on the VCU health system. Again, if we lose much of the capability to handle emergencies on a daily basis, it's going to definitely put us at a disadvantage. I know full well how much Level 1 trauma centers depend on Medicaid funding in general, not only for trauma care but in general, whether it's the VCU health system or Innova Fairfax. And I'm very, very concerned of the impact it's going to have on the ability of those facilities to function, not only in an emergency but on a daily basis. And they do work together. It's hard to expect a facility to add surge if they're to stressed on a daily basis. Nonetheless, we are planning for surge capability, surge beds for an emergency no matter what the situation is on a daily basis. We have to plan for the emergency and recognize that there are stresses on a daily basis. So I know there's going to be enormous impact on a number of facilities, especially our Level 1 trauma centers on a daily basis. It will impact their ability to surge in emergencies. That's not going to stop us from continuing to plan for that large event looking at distribution of patients and hoping facilities respond appropriately. Ms. Norton. Level 1 trauma centers are the ones that, because they are the hospitals that have the greatest capacity, tend to be the ones that are overcrowded? Dr. Kaplowitz. Absolutely. There's one other point here that's not related to Medicaid funding but related to surge. And that is the concern that hospitals have of the funding they're going to receive after an emergency. I bring this up because it's a major issue when hospitals are talking about surging in emergencies. Most hospitals, most health care is private. And there's been a lot of discussion and stress about what kind of reimbursement they would get in responding to emergencies. They're going to respond, but are they going to be dramatically hurt financially? Ms. Norton. Following 9/11, it was easier to get funds out after the fact, and this is what's so frustrating to me. Because in the face of a catastrophe and living in a country that doesn't prepare for anything, money went out. But preparing for such an event is very bothersome. I am concerned, and I would like finally to ask this, if in fact these patients are distributed to the trauma centers wherever they are in a place like the District of Columbia, rather than to have a place that is specially outfitted to deal with traumas, if you would tell me how an emergency room is supposed to decide how to quickly separate the traumas that come, let us say from the District of Columbia, the other people who have serious emergency problems who come in, the people who shouldn't be in the emergency room but perhaps should be referred? I mean, I'm worried about the chaos of just sending everybody to trauma centers in the first place. Dr. Meredith, did you have an---- Chairman Waxman. The gentlelady's time is expired but we'll get an answer to the question. Dr. Meredith. The trauma center itself is designed to do that exact question. A lot of work has been done to define what kind of patient is the trauma patient and how should they move. And those questions are answered. There are about 230 Level 1 trauma centers and about 320 Level 2 trauma centers, so we're talking about saving 550-ish maybe between that and 600 hospitals that are a core of the safety net for patients in the country. Ms. Norton. Thank you. Mr. Chairman, I want to just say I'm very concerned that if people simply go to the hospital closest to them as opposed to the hospital that in fact has been most prepared to handle the surge from the event, all of the placement that Virginia is trying to do for example, kind of a little bit everywhere without Medicaid funds, will not serve us well in the event of a truly major capacity. If I may say so Virginia was not the kind of event that we in the District of Columbia are most afraid of following 9/11. Chairman Waxman. Thank you, Ms. Norton. I want to ask this. We have a health care system in this country that's the most expensive in the world, and yet we have 47 million people who are uninsured. Most of them are working people, and they don't have insurance. So if they get sick, they go to the emergency room. If they don't have insurance, the hospital doesn't get paid for the care that they're given. So hospitals then have to figure out how to survive economically without getting paid for a lot of these emergency room patients. Isn't it true that the people that are in hospitals today because of this whole crazy system we have are some of the sickest people, unlike in other countries where they're not the sickest, they're not the ones that you just can't deny hospital care, but in our country, it's the sickest? Is that right, Dr. Meredith, do you know. Dr. Meredith. I don't know. It's a hard system to figure out, and I work in it every single day. Chairman Waxman. Well, it's a hard system to figure out. But let's look at the system. There's not enough money in the system for all the people who use it who don't have health insurance coverage. Now, does it make any sense--Dr. Hoffman, does it advance the goal of Homeland Security for the Federal Government to then be withdrawing funds from Level 1 trauma centers, whether through the Medicaid program or some other funding source? Is it reasonable for the Federal Government to assume that States and localities are going to make up these losses to the hospitals or the market forces will make up for the short fall? Mr. Hoffman. Mr. Chairman, you know, I think we've already learned the lesson of not being adequately prepared before 9/ 11, so, no, it doesn't make sense from my perspective as a terrorist analyst. Chairman Waxman. As a terrorist analyst. How about those of you who are in the medical field? Does it make sense when you're struggling to keep these hospitals going under ordinary circumstances and trying to find out how to fund them for the Federal Government to withdraw Medicaid funds? Dr. Meredith. Market forces will not make up for the loss that this money represents to the safety net hospitals and to these few trauma centers, I'm certain, because of the way the patients are moved around now. They will still get those patients. And when it represents such a loss that they can't sustain it, they will stop being trauma centers, and we'll lose them from the system, and it will be tragic. Chairman Waxman. A lot of hospitals are already closing their doors for the emergency rooms because they can't afford to keep them open. Dr. Kaplowitz, you're trying to find out how to plan, you're trying to plan for an ordinary catastrophe or a terrorist kind of catastrophe. Does it help your planning efforts when the Federal Government withdraws money from the Medicaid program or some other funding source? Dr. Kaplowitz. Not at all. And as I mentioned already, we're very grateful for getting some funding for emergency planning. But that's only a fraction of the funds hospitals receive. It couldn't then begin to replace the Medicaid dollars or the other dollars they need to maintain their infrastructure. So absolutely it makes no sense at all to lose that much funding. Chairman Waxman. Now, some people say disasters are local. Local communities need to prepare for a terrorist bombing or similar attack. But it's also true that the Federal Government has a responsibility here, which starts with at least doing no harm. And that means not withdrawing Federal Medicaid funds that now support Level 1 trauma centers in the highest risk cities. I wanted to pursue another point about how we prepare for a terrorist attack. There has been, Dr. Hoffman, evaluations of potential terrorist attacks. In fact, I think the Centers for Disease Control brought together a panel. Is it the consensus of people looking at possible terrorist attacks, if we're going to have one, it's going to be using conventional weapons rather than a weapon of mass destruction? Mr. Hoffman. Absolutely. Again, I don't think we can rule out any potentiality. But certainly the higher probability event is conventional explosives and perhaps with suicide attacks. Chairman Waxman. In fact, according to the CDC report that was produced, they said a terrorist bombing attack in the United States would be a predictable surprise, like a hurricane is a predictable surprise, or a major automobile traffic accident could be a predictable surprise. Yet the Federal Government, under existing law, has a responsibility for developing national medical surge capacity to respond to a mass casualty event, such as a terrorist attack with weapons of mass destruction. Last October, the President issued Homeland Security Presidential Directive No. 21, which established a national strategy for public health and medical preparedness for this kind of an event. It's crucial that we be prepared for an event using a dirty bomb or biological weapon. But I don't know that there's any national strategy to prepare for or respond to a terrorist attack using conventional explosives, such as happened in Madrid or here in Oklahoma City or at Centennial Park in Atlanta. Dr. Hoffman, is there such a Federal response being prepared by this administration that says, the buck stops here? Mr. Hoffman. No, my understanding is that incidents like terrorist attacks involving conventional explosives are viewed to a lesser included contingency, and the assumption has long been, going back from what I testified before a subcommittee of this committee that Congressman Shays chaired nearly a decade ago, is that generally these more conventional types of terrorist attacks don't receive the same type of attention that the high end, less likely threats do. Chairman Waxman. Well, this is exactly what we want to ask the Secretary of Health and Human Services and the Secretary of Homeland Security. What is the Federal Government doing? What do we have in place? What are we planning in case a predictable event such as a terrorist attack occurs. And some people think that's partisan to ask those questions. I think it is something we ought to be asking on a bipartisan basis. Mr. Shays. Mr. Shays. Thank you. Dr. Hoffman, Hadassah Hospital in Jerusalem has a facility that has a whole floor designed for a surge capacity, but they have no doctors to man it. In other words, it's--and it is there for a potential chemical attack, and so on, where they can isolate patients and so on. I see the logic of doing that, but I don't see the logic of staffing it. And so then they compromise and they bring other people in from different places. Isn't that a model that makes sense for the United States? Mr. Hoffman. Well, sir, I used to think I was in a depressing field studying terrorism until I sat on this panel with my distinguished colleagues. And given everything that I've heard about the capacity of our trauma centers this morning, it's a different situation. Mr. Shays. I don't know why it's different. They have to deal with a terrorist attack and that's what we're talking about right now. I mean, you know, Dr. Lewis, your hospital was kind of shut down for a while because they required you to have more people present. I mean the requirements changed and so it took a while to get back up to speed because of, I think, new regulations; is that correct? Dr. Lewis. I don't believe our hospital was shut down at any time. Mr. Shays. I mean--you know what I'm making reference to. Do you want to explain it? Dr. Lewis. Actually I'm not sure. Are you talking about a citation we received in response to long waiting times in the emergency department? Mr. Shays. Right. I meant only--I'm sorry, I didn't mean hospital, I meant in the emergency room. This is not a trick question. I mean, the point that I'm trying to make was that you had to staff it at certain level and you weren't able do that, correct? Dr. Lewis. The citation was in response to delays in seeing patients with acute medical conditions because of the long waiting time in the emergency department. Mr. Shays. Right, but---- Dr. Lewis. Let me try to answer your question. The staffing was simply a way of more quickly screen--additional staffing to screen those patients. The question you asked about how Israel is different, one very important way that Israel is different is that because of the constant concern over mass casualty incidents they do not allow their emergency departments to become overcrowded. And one way they accomplish that is that if the emergency department becomes overburdened they immediately move those patients up into non-normal treatment areas inside the hospital so the emergency department does not get gridlocked. And that's a reflection of their greater day-to-day awareness of this threat. Mr. Shays. So but the bottom line is they have a surge capacity in space, not necessarily in terms of doctors on duty and nurses on duty. And it would strike me that's part of the model. It would strike me that part of the model that we have to work on is better coordination and how we move patients and so on. And we're connecting two things that maybe need to be connected. But in the process we're really talking about two separate issues. One, do you have the capability to deal with your basic emergency needs day in and day out? I mean I'd love to know--I'd love to keep going because I'd love to know is there a rule of thumb with so much population you need a trauma 1, a trauma 2 and a trauma 3. Some States may not have it. I think West Virginia doesn't. Is there--should every hospital have an emergency facility? And I understand that some don't now. You know, so those are all legitimate, you know, questions that I have no answer to. Dr. Lewis. I'd just like to comment that there are standard rules regarding for a population of a given size the number of inpatient hospital beds. Prior fiscal pressures have forced many hospitals to reduce the number of inpatient beds that they either maintain physically or maintain staffing for. So fiscal pressures over the last 10 or 15 years have resulted in most or at least many metropolitan areas having a number of inpatient beds far below the originally recommended number. Mr. Shays. Right. Dr. Lewis. That's the direct cause of the ED overcrowding that we've been talking about. So there are rules of thumb and we violate them. Mr. Shays. But what would be a shame in this process is I happen to have opposed the changes in requirements. And we voted to try to hold them, but what would be a shame would be to not be having the dialog about all the other things that don't take money necessarily, but talk about coordination, which we're not even getting into. Dr. Kaplowitz, my understanding is Virginia does a better job of anticipating these kinds of challenges. Dr. Kaplowitz. Well, we've had to out of necessity but I wanted to make the comment about Israel. I've been there. Israel provides health care coverage for everybody in their population. Mr. Shays. Right. Dr. Kaplowitz. Their facilities are not under the same financial stresses as ours are here. Not only do they deal with suicide bombing, but every single one of their hospitals is a hospital when they have a war. It's a different mindset, but the fact that everybody has coverage, everybody has a medical home, it's made an enormous difference in terms of their emergency preparedness and the stresses on their individual hospitals. Mr. Shays. Let me just end with this comment. First, one area where the administration doesn't get enough credit is the effort they have gone with community-based health care clinics. We've expanded from 10 million to about 16, 17 million people covered. That's one area where they do deserve credit. And there's areas where they, you know, rightfully should be criticized. I happen to be on legislation cosponsoring with Jim Langevin that says we're going to go to universal coverage giving--providing the same health care benefits that Federal employees have as a choice to everyone. Where I have my big disconnect, and it seems like it's an issue we don't want to ever discuss in this country, is how we deal with the 13 to 20 million people who are here illegally. They are not undocumented. Undocumented means that somehow all they have to do is be documented. By not being documented they are here illegally and they are here illegally. And it doesn't seem to come up. And I know for a fact these are folks that don't have coverage and intuitively they are going to go wherever they can get help and they are going to go to emergency wards. And the fact that we like want to dance around this just blows me away. That's my comment. Dr. Kaplowitz. I did want to make a comment about a public health study that has shown that recent immigrants actually used less medical care than the rest of Americans. This was brought up in the recent series about disparities in care. So while I acknowledge that there are significant numbers of people who may we here illegally, they actually used less medical care than---- Mr. Shays. And let me tell you why I think that is an irrelevant statement. They use less care and when they do use it they go where they can get it, which is an emergency ward. And therefore the logic is that when they do use it, they are using it there. Dr. Kaplowitz. They---- Mr. Shays. Thank you. Dr. Kaplowitz. I will add another comment. They are not only going to emergency rooms. I'm on the board of a free clinic--free clinics--an enormous amount of care, including to undocumented persons. So they don't all go to emergency rooms. Mr. Shays. They go to community-based health care clinics, we know that, and that's one thing the administration has done well. Chairman Waxman. I want to raise a point that I think this issue of illegal immigrants is a red herring. Mr. Shays. Why? Chairman Waxman. The reason it is a red herring is that illegal immigrants are not eligible for Medicaid, they are not eligible for Medicare. They may get private insurance, and if they do, their insurance company is paying the bills based on their payment to the insurance company. Mr. Shays. But isn't that---- Chairman Waxman. I'll take a time and then I'll let you take a time. Mr. Shays. Thank you. OK, no problem. Chairman Waxman. I'm not going to get interrupted. So when the people who are illegal come to an emergency room, it's usually as a result of a trauma. Dr. Lewis and Dr. Meredith, from your experience and knowledge of what goes on in emergency rooms, are most of the people in emergency rooms for trauma undocumented aliens or are they people that don't have insurance coverage when the hospital ends up with a bad debt? Dr. Meredith. Most of the people in the emergency departments are not for trauma, they are for other emergency conditions. Trauma is very important to me, but a smaller part of what goes on in emergency departments. Most of the patients who are trauma patients are not undocumented or illegal, they are a spectrum of American civilization. They--everybody gets hurt, and they are a complete spectrum of people, a complete spectrum of people. We take care of them all. We just stop their bleeding, that's all we can do. Chairman Waxman. Dr. Lewis. Dr. Lewis. I agree with the statement, trauma is a nondiscriminate force and it doesn't ask you about your legality status before you get hurt. Chairman Waxman. Now, let's say Dr. Meredith rightfully pointed out that emergency care is not just trauma care. So someone gets sick, and they don't know where else to go, and they don't have health insurance and they end up in an emergency room. Of course that's the most expensive setting for people to get health care, which is one of the problems in our non-system of health care in the country. People get seen and treated in the most expensive way. They could go to a community health clinic. When you see people who come in because they have no health insurance with a minor problem, do they get something extraordinary? Do they get a lot of time and attention which will encourage them to come back with these smaller problems? Dr. Lewis. It is my impression that the--if we're focusing specifically on illegal immigrants in Los Angeles County who come to my hospital, my impression is that the vast majority have attempted to seek care in other facilities first for the same problem, except for acute serious illness that couldn't be treated anywhere else. And occasionally they find that the community health clinics, some of which are federally supported, some of which are just free-standing, have been unable to take care of their problem because it has either gotten worse despite treatment or there has been some complication. But it is my impression the vast majority of them attempt other avenues for seeking medical care before they come to my department. Chairman Waxman. Now there are 47 million people without health insurance. I've heard an estimate that there may be as many as 5 million illegal immigrants. Now 47 to 5, of those 5 million illegal immigrants, some of them have health insurance, isn't that true? They have a job where they are provided health insurance, probably most of them don't. And if they need health care, they'll go to a clinic. It's the right thing to do for us to have put in more money into the community health centers programs. But it doesn't deal with the problem that we have. Let's say 47 plus 5, 52 million people. Yet if something terrible happens to them they have to go to get care immediately, they are not going to go to a clinic, they are going to go to an emergency room. What should the Federal response be for emergency rooms that are facing 47 plus 5, 52 million people without insurance? Well, the hospitals can't turn them away. Well, what most hospitals do if they are private hospitals they will close their emergency room. And then if they don't have an emergency room, these people have to go to places where there are emergency rooms. But if those emergency rooms are already overburdened, they are diverted to other emergency rooms. Isn't that what happens? Dr. Lewis. Yes, that's correct. And although I don't have a good suggestion for what the Federal Government should do, what I am sure that it should not do is reduce the funding for those safety net hospitals prior to having a viable alternative solution. Chairman Waxman. And certainly they shouldn't do it without finding out what the consequences are. That's what's so shocking to me about these Medicaid cuts. The Center for Medicaid Services and the Department of Health and Human Services never even did an evaluation of what the impact would be if these kinds of cuts took place. They simply said we'll let the States and local governments figure out how to deal with this. Well, it seems like they are trying to make the States and local governments have to deal with everything. And at least when it comes to a terrorist attack there certainly ought to be a Federal responsibility. I believe there ought to be a Federal responsibility for all people in this country who don't have access to health care because this is distorting our whole health care system. So that's why I say it is a red herring to say the problem is all these illegal immigrants. It's not just that. That's an over simplification and a diversion from the much more serious problem that this administration for 7 years has not given us any ideas except maybe give a tax break--which is inadequate to even buy health insurance--to a lot of people who couldn't then afford to buy health insurance even with that tax break. Mr. Shays, I will recognize you for the last 5 minutes, and then we will continue. Mr. Shays. Thank you. And I would be happy to have you interrupt me if you'd like--I mean to ask a question. Chairman Waxman. No, I will not interrupt you. Mr. Shays. What I'm looking for is meaningful dialog. I don't have any dog in this race. I mean I'm just trying to understand something. And I get confused because in the Medicare Modernization Act funds were included for hospitals in States with high numbers of illegal immigrants because these hospitals complained about the problem of illegal immigrants who were in fact stressing their hospitals. So you know---- Chairman Waxman. In the Medicare---- Mr. Shays. In the Modernization Act. Chairman Waxman. Do any of you know whether that's accurate, because I don't believe that's accurate. Mr. Shays. The question I have is first off, I do not believe that this is the cause of the problem. I think it is a part of the problem. It is news to me that if we have anywhere from 13 to 20 million people there illegally, that only 5 million don't have health coverage. That's news to me. And we have 13--we have 12 million people who are here legally who are documented, but not citizens. We have a range between 13 and 20 million who are not here legally. They are here illegally and I make an assumption, maybe incorrectly, that a majority don't have health care. Because it would really be surprising to think that 85 percent of Americans have health care, but you know undocumented workers have that same average or even half that. I happen to believe that we need to have universal coverage. All I want is an answer from folks who are there that my understanding is you got two options for someone without health care. You go to a community-based health care clinic or you go to the emergency ward. I mean, I don't know if there are other options. And so it strikes me that we are stressing the emergency rooms. And they are hugely costly. I went where I had three stitches. The hospital got into a dispute with the insurer and sent me a bill for 1,300 bucks for three stupid stitches. Had I gone somewhere else it wouldn't have been obviously that expensive. And so I'm just trying to make the point to you, Henry, that I think that we spend a fortune on health care, far more than other countries, and that we keep saying well, we just have to spend more money. We're at 18 percent of our gross domestic product and I don't think we can actually find a lot more money. And so what I struggle with is are there things that don't involve money where we can deal with the surge capacity. And Dr. Hoffman, you didn't seem to want to jump in on some of this, like all of a sudden this was outside your expertise. But it strikes me that we can learn from what other places do. And they don't put a lot more money in, they have extra bed space with no doctors. What I was confused by Dr. Lewis in the dialog with Mr. Issa, you said, well, we have 45 beds, but they are unmanned. Is that a bad thing that they are unmanned? Is it good that you have this space in case you have a need for surge capacity? And another question I ask all of you, aren't there times when we're going to have to break the rules of so many nurses and so many doctors when you have an emergency. Then it seems to me you throw it out the window, you may have doctors working overtime, nurses working overtime and some rules being broken during a surge--a needed surge. Dr. Lewis. First of all, I agree with you 100 percent that there are issues of coordination and response to major, very infrequent events that could be used without substantial funding to improve our ability to respond. I think there's no question that is correct. The issue regarding the unstaffed beds in the hospital has something to do with the funding source. We're a publicly funded institution. The vast majority of our funds either come from or come through Los Angeles County. These are public funds. Such--the similar kind or type that you're responsible for administering. Our hospital administrators cannot make a decision to go over their budget and staff those beds. It is not their authority. It is a public process that's overseen by the board of supervisors, who I understand were here recently. So it's--I got the impression or the implication was made that a hospital administrator was not staffing them to avoid losing money. That's not the case. It is just not an option. Second, with respect to the money that is already being spent in preparedness, I think a number of us have tried to point out the disconnect between the most likely unusual mass casualty incidents and the types of incidents that seem to have been focused on by the existing hospital preparedness program. That program used to have the term, I believe, bioterrorism in its name. They took out the bioterrorism part of the name, but still maintained most of the focus on supplies and equipment that are related to relatively unlikely events. So one thing that we can do without asking for additional money is to focus on the most likely events, and I'm not talking about the everyday surge events, the most likely true mass casualty incidents. And then last, I'd like to simply point out that in Los Angeles County the public funds that support our institution, part of them come from tax revenues. Those tax revenues are driven by the economic activity in that area. I'm in no position to speculate regarding what the effect of removing those illegal workers would be from our economy, but I'm not actually sure that the net effect on the funding of our health care system would be beneficial. I actually think it would probably be detrimental. Clearly a health economist would have to look at that, hopefully one not driven by partisan concerns. Chairman Waxman. Thank you, Mr. Shays. Ms. Watson, did you---- Ms. Watson. I sure do. And I just want to say, I don't think it's really clear to some Members that if you are an illegal immigrant you are not eligible, you're not eligible for Medicare and Medicaid. As Dr. Lewis astutely notes, there are some Federal policymakers who still do not see the relationship between maintaining robust emergency and trauma care capacity and a successful homeland defense strategy. Hello. I would like to ask Dr. Hoffman and Dr. Kaplowitz, both of whom know a great deal about emergency preparedness and response, to help us connect the dots. While there is much dispute about whether the Medicaid regulations are justified, there's no dispute that they will reduce the amount of Federal Medicaid revenues to Level 1 trauma centers and other hospitals throughout the country. There is also no dispute that the loss of Federal funds will vary from hospital to hospital and that for some Level 1 trauma centers these losses will be substantial, potentially forcing reductions in services and degrading their emergency response capacity. So Mr. Hoffman, does it advance the goal of Homeland Security for the Federal Government to be withdrawing funding from Level 1 trauma centers whether through the Medicaid program or some other funding source? And is it reasonable for the Federal Government to assume that States or localities will make up these losses to the hospitals or that market forces will make up for the shortfall? Mr. Hoffman--Dr. Hoffman, excuse me. Mr. Hoffman. Well, I think certainly not in those cities, for instance, that the Department of Homeland Security have identified at least the most likely threat of a terrorist attack. Ms. Watson. Excuse me, when you say most likely those areas, how do you define the areas that are most likely the target of terrorist attacks? Mr. Hoffman. Well, the Department of Homeland Security and also private risk management firms have assessed on a variety of indicators in terms of terrorist interests, in terms of the vulnerability facilities in those cities, which cities in the United States would be more likely than others perhaps. Ms. Watson. Would you consider the West Coast or Los Angeles area? Mr. Hoffman. Certainly Los Angeles and southern California. San Francisco probably falls into that category as well. Ms. Watson. OK. Mr. Hoffman. I mean given the pattern of terrorists, and certainly since 9/11 there is a very high concentration of these activities, fortunately not yet in the United States but overseas in major cities that are at least if not the capital of their nations, then at least are business centers or transportation hubs. Ms. Watson. I just wanted to hear your response. Thank you. Mr. Hoffman. But if I could just finish for a second? Ms. Watson. Yes. Mr. Hoffman. I would go back to what Dr. Kaplowitz said about Israel, which I think is absolutely correct, is that their energy services are not as over stressed in terms of their personnel as it appears in the United States. London by contrast though I think is very similar to the United States in that respect with emergency rooms that have--that already are burdened by a health system with lots of people in urban areas coming into them. You can see the difference in the response of the London hospitals to the July 7, 2005 attacks. There I think the coordination was not as good, even though they had extensive drills and extensive training, the planning--the system broke down in essence because there were insufficient personnel on that because the systems themselves were stressed. Ms. Watson. Dr. Kaplowitz, as a State official you've been involved in a great deal of planning for emergency preparedness and response throughout Virginia. Does it help your planning efforts when the Federal Government withdraws funding from Level 1 trauma centers, whether through the Medicaid program or some other funding sources? Dr. Kaplowitz. Not at all. I need those facilities to survive. And I know what kind of stress they are under on a daily basis. You remove Medicaid funding, it could be disastrous. We have seen any number of hospitals need to close their doors. The last thing I need is for any more hospitals to not be able to survive financially. And the stressors for trauma centers are enormous. The additional cost it takes to keep your trauma center open is significant. And these facilities are functioning with very small margins. So I need them to be able to function and stay open, and I need them to maintain their expertise in order to appropriately respond to emergencies. I've been at the Health Department almost 6 years. In my prior life I was at the VCU health system for 20 years, including working in hospital administration, and I know what kind of stress that facility is under on a day-to-day basis. You take away significant Medicaid funding, it's going to be disastrous. And the sameis true of all trauma centers in the Commonwealth. Ms. Watson. Thank you for that. Chairman Waxman. Thank you, Ms. Watson. And I want to thank this panel. I think you've given us a lot of good information, some of it quite startling, and I think we have to pay a lot of attention to it and ask the people in charge, the Secretary of Health and Human Services and the Secretary of Homeland Security, both of whom are going to be here Wednesday, how to respond to some of these concerns what the Federal Government is doing and at least find out whether we're doing harm with some of the proposals that are being pushed. That concludes our hearing today--oh, yes, there was one item, Mr. Issa requested unanimous consent to put in documents. I have no objection. Does anybody? Ms. Watson. No objection. Chairman Waxman. Without objection, those documents will be part of the record. We stand adjourned. 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DAY TWO WEDNESDAY, MAY 7, 2008 House of Representatives, Committee on Oversight and Government Reform, Washington, DC. The committee met, pursuant to notice, at 9:31 a.m., in room 2154, Rayburn House Office Building, Hon. Henry A. Waxman (chairman of the committee) presiding. Present: Representatives Waxman, Cummings, Tierney, Norton, McCollum, Van Hollen, Murphy, Sarbanes, Davis of Virginia, Shays, Issa and Sali. Staff present: Phil Barnett, staff director and chief counsel; Karen Nelson, health policy director; Karen Lightfoot, communications director and senior policy advisor; David Rapallo, chief investigative counsel; Andy Schneider, chief health counsel; John Williams, deputy chief investigative counsel; Sarah Despres, senior health counsel; Steve Cha, professional staff member; Earley Green, chief clerk; Zhongrui ``JR'' Deng, chief information officer; Leneal Scott, information systems manager; Kerry Gutknecht, William Ragland, Miriam Edelman, and Jennifer Owens, staff assistants; Sheila Klein, office manager/general assistant to the staff director; Larry Halloran, minority staff director; Jennifer Safavian, minority chief counsel for oversight and investigations; Keith Ausbrook, minority general counsel; Christopher Bright, Jill Schmaltz, Benjamin Chance, and Todd Greenwood, minority professional staff members; Patrick Lyden, minority parliamentarian and member services coordinator; and Ali Ahmad, minority deputy press secretary. Chairman Waxman. The meeting will please come to order. Today we are holding the second of 2 days of hearings on the impact of the administration's Medicaid regulations on the ability of our Nation's emergency rooms to respond to a sudden influx of casualties from a terrorist attack. On Monday we heard from the leading experts that the emergency rooms in our Nation's premier trauma centers have little or no surge capacity. We learned from them that many Level I trauma centers do not have the capacity to respond to a terrorist bombing like the one that happened in Madrid in 2004. And we learned that the administration's new Medicaid regulations are expected to make these problems worse by cutting off crucial funding. The hearing left us with a number of important questions, which we hope to answer this morning. Why would the Department of Health and Human Services, knowing that the Nation's emergency care system is already stretched to the breaking point, withdraw billions of Federal dollars from the hospitals that provide the most comprehensive emergency care to the most seriously injured? Why would the Department of Health and Human Services take this drastic step without first considering the impact of its actions on emergency preparedness or consulting with the agency with lead responsibility for homeland security? Why would the Department of Homeland Security, which is the Federal agency with lead responsibility for protecting the Nation from terrorist attacks, stand by while local emergency surge capacity is compromised? The impact of the Medicaid regulations on our health care safety net is not a partisan issue. Last month Republicans in the House joined with Democrats in passing bipartisan legislation that would postpone the regulations and give Secretary Leavitt and Secretary Chertoff an opportunity to reevaluate their implications for homeland security. The issue we are considering today is one that concerns all Americans: how to ensure that we have a robust response capacity in our emergency rooms. If the unthinkable happens, and we have learned that the unthinkable can happen, lives will be lost unless emergency care is immediately available. If a major city experiences a terrorist bombing like the one that occurred in Madrid, there will be a golden hour, an hour in which the fate of those who are injured will be determined, whether the most severely injured survive or die. The Federal Government's job is to do everything possible to ensure that emergency care resources are ready during that golden hour. Certainly our government should not be taking actions that undermine the prospect of an effective emergency response. That is why we are having this hearing today, and that is why I look forward to the testimony of the two men in charge, Secretary Chertoff and Secretary Leavitt. [The prepared statement of Chairman Henry A. Waxman follows:] [GRAPHIC] [TIFF OMITTED] T5290.127 [GRAPHIC] [TIFF OMITTED] T5290.128 [GRAPHIC] [TIFF OMITTED] T5290.129 [GRAPHIC] [TIFF OMITTED] T5290.130 Chairman Waxman. But before we go on, I want to recognize Mr. Davis for an opening statement. Mr. Davis of Virginia. Well, thank you, Mr. Chairman. As you said, we are here today to discuss two issues, Medicaid reimbursement regulations and the hospital surge capacity in response to predictable, some say inevitable, mass-casualty events. And we are fortunate to have two very distinguished witnesses to inform our discussion. Welcome Secretary Leavitt and Secretary Chertoff. We appreciate your taking your valuable time to be with us today. As we learned from Monday's testimony on these same subjects, the nexus between Medicaid payments to hospitals and emergency preparedness may seem intuitive, but it is not by any means proven. Extrapolating directly from daily emergency department utilization rates to catastrophic surge capacity overlooks complex and interrelated factors that differentiate single-facility financial management from the broader resources needed to mount a coordinated regional disaster response. But extrapolate the committee did in releasing a 1-day snapshot of hospital emergency room occupancy in seven major cities and concluding it painted a complete picture of surge capacity. Consulting the issues of Medicaid reimbursement and terrorism preparedness simultaneously oversimplifies and obscures both issues. I happen to agree with Chairman Waxman, we ought to know more about the impact of the administration's proposed regulation changes before exacting further cost savings from an already stressed health care system. But wrapping that issue in the mantle of terrorism creates the false impression solving the problem of emergency room capacity on Tuesday means we are ready for doomsday. It does not. As one peer-reviewed study put it, surge capacity planning involves ensuring the ability to rapidly mobilize resources in reaction to such a sudden unexpected increase in demand regardless of baseline conditions. It is just too simple and fiscally untenable to say there can never be cost savings in Medicaid as long as we are not ready for a Madrid-style attack. Both Medicaid efficiencies and preparedness need to be pursued, not one pitted against the other. So I hope we can move beyond limited snapshots and talk about the dynamic range of factors in addition to baseline facility funding that make up real surge capacity organization, leadership, standards of care, medical education and training, interoperable communications, transportation coordination and information technologies. Finally, we appreciate the fact that our witnesses made a tough choice to be here today. As we speak, the Federal Government is conducting a national continuity of operations exercise, testing many of the response elements needed to treat a surge of trauma patients. I hope the exercise goes well in their absence, and trust the committee's approach to these issues will continue to be constructive and supportive of executive branch efforts to prepare the Nation for catastrophic events. Thank you. Chairman Waxman. Thank you very much, Mr. Davis. [The prepared statement of Hon. Tom Davis follows:] [GRAPHIC] [TIFF OMITTED] T5290.131 [GRAPHIC] [TIFF OMITTED] T5290.132 Chairman Waxman. Because of time constraints, we will leave the record open for all Members to insert an opening statement in the record. But we will go right to our very distinguished witnesses, and we are privileged to have both capable Secretaries with us today with distinguished careers in public service. Secretary Michael Chertoff served as the Secretary of Homeland Security since February 2005. That capacity is a challenge. He has a challenging and critical responsibility to lead the Nation's efforts to prepared for, protect against, respond to and recover from terrorist attacks, major disasters and other catastrophic emergencies, whether man-made or natural disasters, that affect our homeland. And before taking the helm at the Department of Homeland Security, Secretary Chertoff served as a judge on the Third Circuit Court of Appeals. Prior to that he served as Assistant Attorney General of the Criminal Division at the Department of Justice. Secretary Michael Leavitt has been the Secretary of the Department of Health and Human Services since January 2005. As Secretary of HHS, he is responsible for managing a daunting array of medical, public health and human services programs. HHS is the lead Federal agency for public health and medical preparedness and response. And before coming to HHS, Secretary Leavitt was the Administrator of the Environmental Protection Agency. He also served as Governor of Utah for three terms, and during his 11 years as Governor, Utah was recognized six times as one of America's best-managed States. We are pleased to have both of you here with us. I don't know which one of you wants to go first. Secretary Leavitt--both of your prepared statements will be in the record in full. We would like to ask you to make your oral presentation to us now. STATEMENT OF MICHAEL O. LEAVITT, SECRETARY OF HEALTH AND HUMAN SERVICES Secretary Leavitt. Good morning, Mr. Chairman. And thank you very much, Ranking Member Davis and other members of the committee. I am very pleased to discuss HHS leadership role in the public health and medical emergency preparedness efforts, as well as HHS and CMS efforts to ensure that Medicaid pays appropriately for services that are delivered to Medicaid recipients. As you know, local, State and Federal agencies have a shared responsibility for ensuring that the Nation is prepared for emergencies. In that context permit me to briefly discuss a few of the emergency preparedness efforts that are currently being led by HHS. On October 18, 2007, President Bush signed the Homeland Security Presidential Directive No. 21 [HSPD-21]. It established a new national strategy for public health and medical preparedness. HSPD-21 mandates the development of an implementation plan. HHS chairs the interagency writing team that drafted the implementation plan that is currently in the process of being finalized. As part of the implementation plan, HHS is implementing an Emergency Care Coordinating Center. This new center will serve as a coordinating focal point for emergency care as an enterprise. The ECC, as we have come to know it, charter is being finalized, and we anticipate to have the center up and running by the end of this year. The National Response Framework Emergency Support Function [ESF] 8, titled the Public Health and Medical Services Function, provides a mechanism for coordinating Federal assistance to State, tribal and other local resources in response to a medical disaster. The Secretary of Health and Human Services leads all of the Federal public health and medical response to public health agencies. The Secretary of HHS also coordinates through his Assistant Secretary or ASPR all of the ESF 8 preparedness, response and recovery actions. The National Disaster Medical System [NDMS], transferred from the Department of Homeland Security to HHS, remains the tip of the spear, if you will, as the Federal disaster health care response capacity. Over the past 5 years, the Hospital Preparedness Program has provided more than $2.6 billion to fund the development of medical surge capacity at the State and local level. As part of our pandemic planning, we have asked grantees to report participating hospitals' ability to track beds electronically, to report to the grantee's emergency operations center within 60 minutes of a request. From 2002 to 2007, the Public Health Emergency Preparedness Program has provided $5.6 billion to State, local, tribal and territorial public health departments. This program has greatly increased the preparedness capabilities of the public health departments. Now turning briefly to Medicaid, it is important to remember that Medicaid is fundamentally a Federal-State commitment to provide health care for Medicaid beneficiaries. First and foremost, our responsibility is to assure that these low-income children, pregnant women and people with disabilities are able to receive high-quality and appropriate care when they need it. The package of recent Medicaid regulatory activity will help enable, or to ensure rather, that Medicaid is paying providers appropriately for services delivered to Medicaid recipients, and that those services are effective, and that taxpayers are receiving the full value of the dollars that are spent through Medicaid. GAO and the Office of Inspector General at HHS have provided policymakers with numerous reports on various areas in which States inappropriately engage in activities that maximize Federal revenues. These rules address these types of abuses head on. It addresses them by ensuring that the Federal Medicaid dollars are matching actual State payments for actual Medicaid expenses to actual Medicaid beneficiaries. Medicaid is already an open-ended Federal commitment for Medicaid services for Medicaid recipients. It should not become a limitless account for State and local programs and agencies to draw Federal funds for non-Medicaid purposes. In conclusion, as I have mentioned earlier, HHS is working diligently to improve our Nation's emergency preparedness and our medical surge capacity, and we have made extensive funding available to hospitals through the States specifically to this end. Medicaid, however, is fundamentally a partnership that relies on both States and the Federal Government to contribute their share of the cost of the program. Allowing for the continuation of abusive practices that shift costs to the Federal Government is not an appropriate way to ensure our Nation's preparedness. We are committed through our emergency preparedness efforts to continue to make progress and to make funding available to States while acting through these Medicaid rules to provide greater stability in the program and equity to the States. And I want to thank you for the opportunity of being here to testify. Chairman Waxman. Thank you, Secretary Leavitt. [The prepared statement of Secretary Leavitt follows:] [GRAPHIC] [TIFF OMITTED] T5290.133 [GRAPHIC] [TIFF OMITTED] T5290.134 [GRAPHIC] [TIFF OMITTED] T5290.135 [GRAPHIC] [TIFF OMITTED] T5290.136 [GRAPHIC] [TIFF OMITTED] T5290.137 [GRAPHIC] [TIFF OMITTED] T5290.138 [GRAPHIC] [TIFF OMITTED] T5290.139 [GRAPHIC] [TIFF OMITTED] T5290.140 [GRAPHIC] [TIFF OMITTED] T5290.141 [GRAPHIC] [TIFF OMITTED] T5290.142 [GRAPHIC] [TIFF OMITTED] T5290.143 [GRAPHIC] [TIFF OMITTED] T5290.144 [GRAPHIC] [TIFF OMITTED] T5290.145 [GRAPHIC] [TIFF OMITTED] T5290.146 [GRAPHIC] [TIFF OMITTED] T5290.147 [GRAPHIC] [TIFF OMITTED] T5290.148 [GRAPHIC] [TIFF OMITTED] T5290.149 [GRAPHIC] [TIFF OMITTED] T5290.150 Chairman Waxman. Secretary Chertoff. STATEMENT OF MICHAEL CHERTOFF, SECRETARY OF HOMELAND SECURITY Secretary Chertoff. Thank you, Mr. Chairman. Good morning, Ranking Member Davis and other members of the committee. Let me just take a few moments now since my full statement will be in the record to put into perspective what the role of the Department of Homeland Security is with respect to the issue of preparedness and response, one dimension of which, but only one dimension of which, is the issue of mass care in the event of some kind of a terrorist attack or natural disaster. But I also underscore the fact that the planning and execution of a response to an attack, particularly with respect to the issue of mass care, would implicate not only HHS, but would also require the participation of the Department of Defense and Department of Veterans Affairs. They have a major role to play in furnishing the resources and capabilities necessary to respond to a medical emergency, and their capabilities are built into our plan. So it is not merely a matter of HHS. Basically what I would like do is describe the role that we play in any kind of a response, and, therefore, what role we play in planning in the lead-up to the possibility of a response. As you know, under the National Response Framework and the National Incident Management System, the Department of Homeland Security plays the role of incident coordinator, incident manager. That does not mean that we are exercising command and control over other departments and agencies. That would be prohibited as a matter of law. What we do do is bring to the table the agencies that will play a role. There is a lead agency designated for particular functions; in the case of mass terrorists, the Department of Health and Human Services. That is a designation that is both prescribed by statute as well as by HSPD 5 and HSPD-21. Our role then would be to coordinate and deconflict the various capabilities that we bring to the table and the roles and responsibilities of the lead agency and other agencies, so that, for example, in the case of an attack, let's say a conventional attack, we would obviously have to coordinate the law enforcement response, although the lead agency there would be the Department of Justice. There might well be a security response, in which case we would be coordinating with the Department of Defense and the National Guard. And to the extent there was a mass casualty response, the mission assignment for carrying that out would be to HHS, but there would be support provided by the Department of Veterans Affairs and the Department of Defense. This is all done under the rubric of what we call Emergency Support Function 8, and the actual undertaking would be coordinated through the National Response Coordination Center. As part of the preparation for this, we engage in a variety of planning exercises. And with respect to the issue of mass care, again we look to the Department of Health and Human Services to take the lead with respect to identifying what the gaps are with respect to potential surge capability, what the available resources are, and what are the most efficacious ways to provide those resources. That is done with the understanding that the initial response obligation lies upon State and local public health officials. Therefore, they must participate in the planning, and it is their responsibility to make sure that they are planning in a way that is synchronized with us. We also recognize, however, that these capabilities would likely be overwhelmed in 24 hours, or maybe 48 hours. That is why we have capabilities such as the National Disaster Medical System, which is run by HHS. We would look to the Department of Defense to provide mobile field hospitals and other kinds of medical capabilities, which we would move into the arena as quickly as possible. The National Guard would obviously play a major role. And, again, if there were some particular issue like a chemical attack or a dirty bomb attack, there would be specialized capabilities by the military that would be called into play. So that is the general role that we play in coordinating these issues. We have engaged in planning, strategic planning, on a number of scenarios, including some with medical dimensions, again looking to HHS as the principal lead in identifying what the requirements are, identifying where the gaps are, and formulating a way in which those gaps can be plugged. Thank you, Mr. Chairman. Chairman Waxman. Thank you very much. [The prepared statement of Secretary Chertoff follows:] [GRAPHIC] [TIFF OMITTED] T5290.151 [GRAPHIC] [TIFF OMITTED] T5290.152 [GRAPHIC] [TIFF OMITTED] T5290.153 [GRAPHIC] [TIFF OMITTED] T5290.154 [GRAPHIC] [TIFF OMITTED] T5290.155 Chairman Waxman. Without objection, we are going to begin questioning with 10-minute rounds, first controlled by the Chair and second controlled by Mr. Davis. After that we will go back to the 5-minute rule. I am going to start off the questions myself. Secretary Leavitt and Chertoff, we are here to answer the very simple question, if we had a terrorist attack like what happened in Madrid, with conventional bombs or suicide bombers, which most terrorist experts say is most likely, not the unthinkable weapons of mass destruction, but if the unthinkable, unlikely terrorist attack using conventional weapons occurred, would we be prepared to deal with it? Now, many experts have told us that if we had something like an attack on a commuter train where, as in Madrid, 177 people were killed and more than 2000 were injured, we wouldn't have the surge capacity in some of our major cities to deal with those people in the Level I trauma centers or even in the emergency rooms. Secretary Chertoff, do you think we have the capacity to deal with such an attack? Secretary Chertoff. I do, Mr. Chairman. Now, I want to note that HHS is currently engaged in a systematic survey of capacities and plans across the country, so there is going to be a definitive answer to this. And there is no doubt some communities are better prepared than others. But I don't have to speculate about it. I remember we had a bridge collapse in Minneapolis some months ago. That was exactly the kind of event that you are talking about. It was not a terrorist event, but it was one which certainly posed challenges to casualties. My understanding is that in Minneapolis things worked very well. Chairman Waxman. Thirteen people went to the emergency room under those circumstances. We could have hundreds, if not thousands, of people rushed into emergency rooms. Secretary Chertoff. We have had air crashes, we have had other disasters. I can't give you a definitive statement with respect to a particular city. What I can tell you is I am not sure that the day-to-day capacity rates of emergency rooms is a prediction of the capability of the emergency system to deal with a disaster. Chairman Waxman. Have you delegated that to HHS? Secretary Chertoff. HHS has a principal responsibility, to my understanding. Chairman Waxman. Well, let me read to you what your Chief Medical Officer Jeff Runge told the House Appropriations Committee last month. He said, ``I don't think anybody who has looked would be under the mistaken notion that we are adequately prepared for a hospital surge. We have squeezed all the capacity out of the hospitals' budgets, and it's just not there.'' He went on to say, ``We frankly don't have a lot of solutions for it. Surge capacity does just not exist in the world of hospitals.'' Mr. Runge did say the Federal assets could be brought to the scene of a bombing, as did you earlier, but that could take some period of time, maybe a day or more, which may be too long for many critically injured victims. So your own expert does not think we are prepared. Why, do you disagree with Dr. Runge's assessment? Secretary Chertoff. I wasn't here for the testimony. I think it depends on the number of people. If there are--I can certainly imagine an attack of a dimension that would overwhelm local resources. That is the very premise of what our position is with respect to planning. It is the recognition that the Federal Government would have to step in and surge. And obviously since we are doing a gap analysis, I am going to be the first person to tell you there are undoubtedly gaps that need to be plugged, some of which are planning, and some of which are capability gaps. What I can't tell you is that this is simply a matter of emergency rooms. I think it is a much more complicated issue than that. I will also obviously acknowledge I am awaiting to get more precision in the results of the HHS study with respect to the country as a whole. Chairman Waxman. Well, I don't doubt it is more complicated than one factor or another, but what I fear, and what the experts told us a couple days ago, is if we go ahead with these Medicaid cuts, withdrawing billions of dollars from hospitals that have Trauma I centers and emergency rooms, we will be making the problem worse. We will make it less sure that we can even meet the response that we found so inadequate in our survey on March 25th. At that time the staff called Los Angeles, and three of the five Level I hospitals that were so overcrowded, they simply shut their doors. There wasn't even a terrorist attack. They shut their doors and said divert these people somewhere else. And Washington, DC, both Level I trauma centers surveyed, they are over capacity and treating patients in hallways and waiting rooms. So if in the middle of this inadequate capability of our emergency rooms to deal with ordinary problems we had a terrorist attack, I just think that if we go ahead with the billions of cuts in Medicaid funds for those institutions, we are making the problem worse. The first thing at the Federal level is at least not do any harm. I think a lot of people can ask how is it possible that 6 years since 9/11, nearly 3 years after Hurricane Katrina, we have spent billions of taxpayer dollars on homeland security, and yet our emergency systems are not in place? I don't doubt that you have very good intentions and a lot of helpful initiatives, but the problem is that the positive effect of these programs, which involve grants of millions of dollars, are going to be overwhelmed when we pull out billions of dollars in some of these Medicaid cuts. We were told Monday that the Medicaid regulations will cripple hospital emergency rooms. The head of Virginia's emergency response program said you take away significant Medicaid funding, it is going to be disastrous. An expert from UCLA said the regulations would cripple emergency care in Los Angeles. Secretary Leavitt, do you think these experts are wrong? Secretary Leavitt. Mr. Chairman, I think we are dealing with two fundamentally different assumptions. They are fundamentally different assumptions in two areas. The first is the way surge capacity works, and that we would have to rely on hospitals as the bed for surge capacity. The second is that the mission of Medicaid is the assurance of emergency preparedness. Let me deal with the first one, surge capacity and the way it works. Chairman Waxman. I am asking about the Medicaid, the Medicaid cuts by these new regulations. I know we contacted you and your Department, and we asked for every document that you might have that would indicate that you--if you did an analysis to find out what the impact would be of these Medicaid regulations. And I think we might have even sent the same request to the Department of Homeland Security. And we found that there was not a single analysis of the effects of the Medicaid regulations on our Nation's emergency rooms. If that is the case--maybe we haven't received it, but if that is the case, no analysis has been done. I just think that is irresponsible. Secretary Leavitt. Mr. Chairman, we have exercises on a regular basis, and the people from CMS sit at the same table as those from our Assistant Secretary for Preparedness and Response. Medicaid's mission, however, is not emergency preparedness; it is to provide health care to people, not to support institutions. Now, at HHS we have a very important Assistant Secretary for Preparedness and Response who is tasked with that responsibility. We have made substantial investments in developing surge capacity. Chairman Waxman. Did he do an analysis of what the impact would be of the Medicaid regulations that withdraw money from these institutions? Secretary Leavitt. He manages emergency response, not Medicaid. The analysis on Medicaid was based on the fact that the funds were being drawn for purposes that we believe were inappropriate under the mission of Medicaid, which we believe to be helping people, not supporting institutions. Chairman Waxman. Well, they help people by supporting institutions. Our public hospitals are absolutely dependent on the Medicaid dollars. They have so many people that come into emergency rooms that have no insurance, and the hospitals then have to shift the cost. And then if they find that Medicaid is not going to pay them for graduate medical education or other functions that they serve, they just have to give up the expensive things like Level I trauma centers. That is what they are telling us. But it looks like they never told you because they were never asked the question of what the impact would be with these Medicaid cuts. Secretary Leavitt. Mr. Chairman, it probably won't surprise you that I hear similar expression from those who run schools, who say, we need to have more money for our schools, and if we can find a way to get Medicaid money to support our school effort, it will help our schools. I hear a similar thing from those who run child welfare programs; if we could just get some Medicaid money, it would help us, and they stretch it over to health care. Medicaid was not intended to be our emergency response mechanism. Chairman Waxman. It wasn't intended, but, in fact, it is. Secretary Chertoff, you are head of the Homeland Security. You have designated this issue of health care functioning to HHS, and yet they are saying that they don't know what the impact is going to be of these cuts. Congress always holds hearings after the fact. After Hurricane Katrina and that disaster, we held hearings, and we asked, how could this happen? This is a hearing to find out if we are prepared. I don't want it on my conscience years after a terrorist attack, God forbid, that we realize that we didn't do what was necessary because the bureaucracies weren't functioning the way they should, the planning wasn't taking place, that there was money being withdrawn so that the whole system, which is all very fragile in this country for health care, wasn't able to function when it came to emergency care or preparedness for a surge of victims of a terrorist attack. I don't want it on my conscience. Do you feel that you can tell us today that your conscience would say that we are doing all that we need to do, Secretary Leavitt and Secretary Chertoff? Secretary Leavitt. Mr. Chairman, I share with you the worry about surge capacity. It is a responsibility that I have and we have at HHS. I also worry about the long-term sustainability of Medicaid. Medicaid was not designed nor intended to be the source of money that we use to design an effective surge capacity strategy in this country. We do have a means by which that should be done. If Congress in its wisdom believes that more money is needed for more surge capacity, we need to use the intended vehicle. We need to apply it to a logical, thoughtful strategy. That logical and thoughtful strategy will not include emergency rooms being the only place where surge capacity takes place. There is not an emergency room in America that you can't build a scenario for that will blow the doors off in a very short period of time. Chairman Waxman. So you feel good about the situation? Secretary Leavitt. No, that is not what I said at all, Mr. Chairman. I said I don't feel good about the situation, but I don't believe Medicaid is the way to solve it. Chairman Waxman. And you think we ought to give other money, but we haven't been asked to give other money for this purpose. Secretary Chertoff, how do you feel? Secretary Chertoff. I actually agree with Secretary Leavitt on this. I think that I am the last person to tell you I think we are done. I think that we are--and I have been involved in more specifically looking at the issue of emergency response in the Gulf States. But more generally I think we need to be identifying gaps based on planning done at a Federal, State and local level. And then if we need to plug the gaps with money, the money ought to be targeted to plug the gaps. Where I am seeing a bit of a disconnect, I have no reason to believe that giving more Medicaid money to hospitals is going to result in that money being spent specifically on those items which would be required to deal with a surge situation. Nor is it obvious to me that the only solution in this surge situation is the emergency rooms. So the question to me would be do they need to have additional beds in storage? Do they need to have additional ventilators or medication or things of that sort? And if, in fact, there is a gap, that ought to be directly funded, but with the understanding that money is going to be spent on those issues. I have no reason to believe that Medicaid funding in a hospital is necessarily going to be dedicated to emergency response as opposed to something else. Chairman Waxman. A lot of it is being dedicated to this now, and that money is going to be withdrawn, and it is a sizable amount of money. I have taken up 13 minutes, and I am going to give 13 minutes to Mr. Davis. Mr. Davis of Virginia. Thank you, Mr. Chairman. Secretary Leavitt, let me start with you. Thanks for being here. Regardless of one's views on the regulation, I am concerned about using Medicaid reimbursement to support emergency medical preparedness because it is an imperfect financial tool. In my experience, hospitals use additional revenues created through reimbursement policy. They can be reinvested in ways that may not improve emergency capacity, as Secretary Chertoff just noted. For example, hospitals may more regularly reinvest in expanding capacity for profitable services, orthopedics for example. Do you think that additional Medicaid reimbursement necessarily results in improved emergency surge capacity? Secretary Leavitt. There is no evidence that it does. Mr. Davis of Virginia. Thank you very much. I mean, Medicaid is the fastest-growing part of the Federal budget. It is the fastest-growing part of States' budgets as well. And to allow this to continue without tampering and looking at ways that we can improve service, but at the same time cut back costs means there won't be money for a lot of other things in the budget downstream. Let me ask you this, Secretary Leavitt. For the Homeland Security Presidential Directive No. 21, it is my understanding that there is a stakeholder group that is working on the different financial levers available to improve preparedness. The group is looking at Medicare, Medicaid, private payer, grant funding and market forces. How does this group's work inform future funding decisions made at the Department? Secretary Leavitt. That group is looking at that question as well as many, many others to form this question. Until I receive their report, I don't know what they will say. I think it is clear that homeland security is everyone's second job. We all have a primary job. The job of Medicaid is to take care of people who are poor or indigent or disabled, and States are using ambiguities in the law to try and tap that fund for many different reasons. Mr. Davis of Virginia. Because it is the largest part of their budget? Secretary Leavitt. And they have determined---- Mr. Davis of Virginia. Even in economic downturns when their revenues are less, the Medicaid costs are going up. Secretary Leavitt. In fact, Mr. Davis, I would make the point that Medicaid is the single greatest influence on State budgets right now. Mr. Davis of Virginia. I agree. Secretary Leavitt. And if you wanted to see why States were not investing and why they were looking for ways in which they could divert Federal funds into schools and to child welfare and to public health and public safety, it is because Medicaid is pushing all those things out and crowding them out. Their capacity to do that is being compromised by the fact that the program is growing so fast. Mr. Davis of Virginia. And understand this, 10, 12 years ago it was really not a factor in State governments the way it is today. Secretary Leavitt. I was elected Governor in 1993, and I would have to check this, but I believe it was in the neighborhood of 6 percent of the State budget. Today, again, I would have to check, but I am guessing it is like every other State in that it is close to 20 percent. That means every one of those dollars is crowding out education, it is crowding out higher education, it is crowding out public response and preparedness, all of the things we are talking about. Mr. Davis of Virginia. So in point of fact, putting more money into this may have the opposite effect? Secretary Leavitt. Well, it has had the opposite effect. Mr. Davis of Virginia. The Homeland Security Presidential Directive No. 21 requires that the group review financial incentives that improve preparedness without increasing health care costs. There are economic reasons that hospitals have not increased emergency department capacity or the number of inpatient beds. How does the health system increase capacity without increasing costs? Secretary Leavitt. Well, I want to emphasize in this process the whole concept of all--of being--of all perils response. Everything we do to prepare, for example, for a pandemic helps us for a bioterrorism event. Anything we can do that will use the same assets for multiple things allows us to expand capacity without expanding costs. The idea of sharing assets. The way our surge capacity is designed to work, we know that there is a scenario for every hospital, no matter how big, no matter how well funded, no matter how sophisticated, that the capacity will exceed their ability to deal with that. And therefore every hospital and every community needs to have a surge capacity plan that allows them to use schools that may, in fact, have been mothballed. Or I have seen plans where shopping centers are converted into surge capacity. I have actually witnessed during Katrina convention centers being turned into hospitals, and very good hospitals, in the context of 24 hours. So surge capacity is about using existing assets to convert to hospital capacity very quickly. It is not simply using the emergency room. If you were to look at any emergency room in this country, you would see that at least half of what is there at any given moment would not be considered absolutely critical. And if we turn into an emergency, those will be moved away or asked to be deferred, and we will have substantial capacity that would not have been evident in the snapshot that was taken that the chairman referred to. Mr. Davis of Virginia. Thank you. I would like to ask unanimous consent that a Wall Street Journal article, Nonprofit Hospitals Once for the Poor Strike It Rich, be included in the hearing record. Chairman Waxman. Without objection. [The information referred to follows:] [GRAPHIC] [TIFF OMITTED] T5290.156 [GRAPHIC] [TIFF OMITTED] T5290.157 [GRAPHIC] [TIFF OMITTED] T5290.158 [GRAPHIC] [TIFF OMITTED] T5290.159 [GRAPHIC] [TIFF OMITTED] T5290.160 [GRAPHIC] [TIFF OMITTED] T5290.161 [GRAPHIC] [TIFF OMITTED] T5290.162 [GRAPHIC] [TIFF OMITTED] T5290.163 Mr. Davis of Virginia. Thank you. The majority staff report on the status of emergency departments looked at 34 hospitals and found that many were operating at or above capacity. Three hospitals were diverting ambulances, including one hospital that is undergoing a major expansion that includes the recent purchase of 3 million pounds of travertine imported from Tivoli, Italy, and 569 flat-panel TVs. Another hospital that, according to the majority report, had patients in overflow spaces and borders has also undergone a significant expansion that included a new women's hospital with marble in the lobby, and flat-screen TVs, and birthing rooms. Both of these hospitals are nonprofits and appears that they have sufficient resources to invest in marble and TVs, but not enough to invest in emergency departments. Is this typical, and is this appropriate in your view? Secretary Leavitt. Well, it is not appropriate, in my mind. I don't know how typical it is. I think the point you are making is a good one, and that is many times the lack of emergency room capacity is because the administration of the hospital has chosen not to invest there because it didn't, in fact, assist their business model. Mr. Davis of Virginia. And, in fact, by raising Medicare reimbursement and diverting that money to pay for marble floors and flat-screen televisions really doesn't go anywhere to solve this problem, does it? Secretary Leavitt. You made the point earlier that there is no assuredness or no guarantee that money coming from Medicaid would going into emergency preparedness, and there is no direct link. Mr. Davis of Virginia. The question is if we want to look at surge capacity, perhaps Medicaid is not the best way to look at that. Secretary Leavitt. Indeed, Mr. Davis, it is not. I want to emphasize I believe that there are deficiencies in our surge capacity. I just don't believe Medicaid dollars is the source of funds that ought to be directed or looked to to link to that solution. Mr. Davis of Virginia. Thank you. Secretary Chertoff, thanks for being with us today. Does DHS have the expertise to determine the appropriateness of any of the following matters as it relates to Medicaid? Let me go through them. Whether public providers should be limited to cost in Medicaid reimbursement. Secretary Chertoff. No, we rely on HHS. Frankly, the whole issue of Medicaid is not actually within our purview. So the short answer is no, we don't have the expertise. Mr. Davis of Virginia. Do you have the expertise to determine the appropriateness of the definition of unitive government for health providers that treat Medicaid patients? Secretary Chertoff. No. Mr. Davis of Virginia. How about the appropriateness of graduate medical education payments in Medicaid? Secretary Chertoff. No. Mr. Davis of Virginia. How about the scope of rehabilitation services? Secretary Chertoff. No. Mr. Davis of Virginia. How about the appropriateness of the administrative claims for schools? Secretary Chertoff. No. Mr. Davis of Virginia. The definition of the scope of outpatient services? Secretary Chertoff. No. Mr. Davis of Virginia. The definition of the scope of targeted case management services. Secretary Chertoff. No. Mr. Davis of Virginia. Thank you. The National Response Framework encompasses a broad array of functions and entities. Secretary Chertoff. Correct. Mr. Davis of Virginia. For example, transportation, communication, roads, utility and public work infrastructure may all be heavily used in an emergency; however, these facilities also have important functions unrelated to disaster response or homeland security. Therefore it seems imprudent to describe any service that might have a role in an emergency as a homeland security activity. How do you determine what functions are primarily related to homeland disaster compared to those that are tangentially related? Secretary Chertoff. Well, I agree with you. The key philosophy is what is directly related, and the way we go about that is we put together a plan. We analyze what are the core capabilities that we have to have to respond effectively. We then identify and survey whether there are gaps in those capabilities, and then we determine what is the best way to plug those gaps. Mr. Davis of Virginia. Thank you. Mr. Shays. Mr. Shays. Thank you both for being here, and thank you, Mr. Chairman, for having this hearing. I am wrestling with the fact that I think we are really dealing with two issues. We are dealing with the health care issues and the needs of our hospitals, and we are dealing with a potential catastrophic event and a surge capacity. I would like to know from each of you who has the responsibility? First, has there been a study done that looks at the entire United States to say how many Trauma I, Trauma II and Trauma III centers we need and ideally where they should be located? Secretary Leavitt. Mr. Shays, with respect to emergencies, we are currently doing a study right now under the matter that was referred to earlier. Mr. Shays. Can you move the mic a little closer? Secretary Leavitt. Yes. We are currently doing a study under HSPD-21, the group that was referred to earlier. However, I can also tell you that we are asking and requiring grantees of HHS for pandemic preparedness to give us information about their surge capacity plan. Between those two, we will have a very good idea in the future as to what the capacity is and where our gaps are. I would also like to make the point---- Mr. Shays. When do you think that would be done? Secretary Leavitt. We expect it to be done by the end of this year so that we can make the report before the end-- conclusion of this term. But I would like you to know that we already have the capacity at any given moment to determine where rooms and beds are available anywhere in the country within a reasonably short period of time. During Katrina I was constantly updated as to how many beds we had anywhere in a region that we could move patients to. This is an important part of the way surge capacity works. We are discussing surge capacity today as to what you can put into an emergency room at any given hour. That is not the way surge capacity works. Mr. Shays. I want to make sure that my colleague has time. I would like a brief comment from both of you as to who is ultimately responsible for this issue, because it seems to me like when two people are, no one is. Secretary Leavitt. I think we both agree HHS has responsibility for any matter related to medical response in a disaster. Mr. Shays. And so it would be your job, not DHS, to determine how many Trauma I, II and III units we need around the country. Secretary Leavitt. Well, it will be our determination to determine how many we have, what our gap is and how best to respond to that. Mr. Shays. Thank you. Mr. Issa. Thank you. Governor, I will continue along that line. With 259 trauma centers in the country, 5 in San Diego, 4 in Utah, it is very clear that in San Diego we have as much capacity for our 2 million people in a relatively small area as Utah has in a huge area. For all practical purposes, in the case of disasters of any sort, take the Northridge earthquake, aren't we essentially always assuming for homeland security that they are going to be in high-risk areas, where ultimately the people of Utah or Oklahoma or Wyoming could just as easily have a huge disaster affecting thousands of people over an area that could not possibly concentrate the types of hospitals that we have in Los Angeles or San Diego? So ultimately isn't the planning for major disasters more about the essential planning and training and ability to move people than it ever will be about having operational extra spaces in one location? Secretary Leavitt. Yes. There is no one area of the country capable of handling their own surge in an event of sufficient size to require that kind of capacity. Chairman Waxman. Mr. Davis, your time has expired. Ms. McCollum. Ms. McCollum. Mr. Chairman, the report conducted by the committee highlights serious challenges confronting hospital emergency rooms, and crowding is a serious problem. The American College of Emergency Physicians released a report last month that addresses the crowding issue. The report asks what causes crowding, and it responds, ``Over the years the reasons for crowding have included seasonal illnesses, visits by the poor and the uninsured who have nowhere else to turn except the safety net provided by emergency departments. This country can continue to expand the capacity of emergency rooms, to serve as a provider of last resort for the uninsured and the mentally ill, or Congress can work to provide universal health care for all Americans. The choice is ours.'' Mr. Chairman, I don't know about the situation in New York, Washington, Chicago, Houston, Denver or Los Angeles. I have never visited an emergency in any of those cities, so I will take this report's findings as accurate. But I live in Minnesota, and I need to set the record straight. First, the report inaccurately states that Minneapolis is hosting the 2008 Republican Convention. The convention will take place in St. Paul, MN, my congressional district, with Minneapolis accommodating many of the visitors. This distinction is important, especially for the St. Paul officials, first responders, health care professionals involved in preparing to meet the needs of 40,000 visitors, including the President of the United States and Republican nominee for President. Second, the report examines Hennepin County Medical Center, which is an excellent hospital and a Level I trauma center located in Minneapolis. In the event of an emergency at the national Republican convention, Regions Hospital in St. Paul, an excellent facility, will be the primary responder, with the hospital examined in the report providing support. What concerns me about this report is it examines Minneapolis solely as the presence of the national convention, yet it evaluates emergency room capacity on a random day, March 25, 2008. During the 4 days in September when the Republicans gather in St. Paul, there will be significant additional resources available to ensure a safe, enjoyable convention. There will also be an emergency plan and considerable assets in place to respond to any foreseen event. The Department of Homeland Security designated the national party conventions as a national special security event. This Congress appropriated $50 million to each host city to ensure coordination is seamless between Homeland Security, Secret Service, local and State law enforcement and their first responders. Finally, while I fully understand the use of Madrid terrorist attacks as a standard for assessing casualty preparedness, real American tragedies like the Oklahoma City bombing, Hurricane Katrina, Virginia Tech shooting could also have been used as models. In the Twin Cities we don't need to investigate emergency room capacity using a telephone survey. Our first responders were forced to respond to an emergency in real time. Only 9 months ago on August 1, 2007, at 6:05 during rush hour, 8 lanes of traffic on Interstate 35W, the bridge, it collapsed into the Mississippi River. That night 13 people died, many my constituents. And more that 110 patients required emergency and medical attention. The bridge collapsed due to structural failure. It just as easily could have been the result of a terrorist attack, but the disaster tested the very hospital in the committee's report. Hennepin County Medical Center and hospitals from the entire Twin Cities metropolitan area responded heroically, professionally and efficiently. Their response was not a simulation or a blind phone survey, it was real. And people are alive today because of that response. Mr. Chairman, I have statements from Hennepin County Medical Center, Regions Medical Center, St. Paul's chief of police, Minnesota Hospital Association, I would like to have the committee's permission to enter these into the committee report. Chairman Waxman. Without objection, that will be the order. [The information referred to follows:] [GRAPHIC] [TIFF OMITTED] T5290.164 [GRAPHIC] [TIFF OMITTED] T5290.165 [GRAPHIC] [TIFF OMITTED] T5290.166 [GRAPHIC] [TIFF OMITTED] T5290.167 [GRAPHIC] [TIFF OMITTED] T5290.168 [GRAPHIC] [TIFF OMITTED] T5290.169 Chairman Waxman. The gentlelady's time has expired. Mr. Sali. Mr. Sali. Thank you, Mr. Chairman. Secretary Chertoff, border security is an important issue affecting Idahoans, and the need for secure travel documents I think they consider equally as important. Do you have any security concerns specifically with the use of matricula consular cards, passport cards, NEXUS and Sentry and PASS cards? Secretary Chertoff. First, Mr. Chairman, I guess I do have to observe when I was invited here, I thought the topic was going to be medical surge. It is hard for me to see the correlation here, so I have to ask you whether you want me to answer this. But if you do, I will go ahead and answer. Chairman Waxman. Well, the rules allow each Member to ask questions. Secretary Chertoff. On any topic. Well, the short answer is I think certainly our NEXUS cards and Sentry cards, our PASS cards which are about to be issued by the Department of State are secure. They reflect a substantial step forward in improving the security of our documentation. Likewise our laser border-crossing cards. The matricula consular is not an American-issued card, so I can't warrant or vouch for the security of that. We don't rely upon that for purposes of allowing people to come across the border. Mr. Sali. I think there is a relation here. I hear concerns for many areas of the country that part of the problem in hospitals is that they are overrun with illegal aliens in specific places. And part of the problem in dealing with the problem of illegal aliens is making sure that we have legal ways for people come to our countries that are secure in fact. Was there a recall on the NEXUS, Sentry or PASS cards during the last year or two? Secretary Chertoff. Not that I am aware of. Chairman Waxman. Mr. Sali, it is your time to ask questions, but you are off the topic for which we have invited the Secretaries to speak, I guess Secretary Chertoff will have to decide whether he is prepared to respond. But---- Mr. Sali. Well, Mr. Chairman---- Secretary Chertoff. I could find out. I didn't come prepared to talk about it. Mr. Sali. Perhaps the Secretary would be willing to respond to some of these questions in writing---- Secretary Chertoff. Sure. Mr. Sali [continuing]. If I submit them to the committee. [The information referred to follows:] [GRAPHIC] [TIFF OMITTED] T5290.170 [GRAPHIC] [TIFF OMITTED] T5290.171 Mr. Sali. And if I may continue, do you share the concern that the presence of illegal aliens in our country is affecting the ability of our hospitals to respond in a surge situation? Secretary Chertoff. Well, I don't know if I would connect it to a surge, but I would agree that I am aware that the presence of people who are in this country illegally does strain emergency rooms on a day-to-day basis, because often these people don't have health care through their employers, so they are relying on the emergency room as a kind of primary care facility. And that is one of the things we hoped to address when we took up the issue of comprehensive immigration reform, but as everybody now knows, that didn't take off in the Senate. So in the meantime our approach is to enforce the existing laws as vigorously as possible. Mr. Sali. Secretary Leavitt, let me ask you the same question. Do you share that concern about the presence of illegal aliens, overwhelming at times, on the emergency room and hospital capabilities in our country, and if you do, what is your office doing to relieve that situation? Secretary Leavitt. Again, there is no connection necessarily between surge capacity. But there is little question that many of those who go to emergency rooms to be treated are here without proper documentation. Our Department does provide substantial assistance to hospitals to pay for those, but there is no question about the fact that it is a big part of the problem. Mr. Sali. How much does your agency pay for treatment for illegal aliens each year? Secretary Leavitt. That is not a number I have off the top of my head. It is a big number. Mr. Sali. You will get that for me, though? Secretary Leavitt. I would be happy to respond in writing, to the degree we have that information. Mr. Sali. I have heard both of you say today that the presence of illegal aliens is not directly related to the surge, and yet both of you have said that illegal aliens use emergency rooms as their primary care doorway, if you will, into the health-care system. Secretary Leavitt. This is an important point, and I want to clarify it. On a day-to-day basis, in an emergency room, there are many people who are there for what essentially could be a clinic, not necessarily an emergency. In such a setting, they would be asked to take their health-care problem or defer it for another time, and that capacity would be used for the surge. Virtually any emergency room would have somewhere between 30 to 50 percent of its capacity used in that way. So when we say that they are overflowing, they are not overflowing necessarily with people who are in life-and-death situations. Surge capacity would clear those out in the kind of emergency we are talking about to be treated in another way or on a different day. Chairman Waxman. The gentleman's time has expired. Mr. Sarbanes. Mr. Sarbanes. Thank you, Mr. Chairman. On that last point, we had testimony on Monday that suggested that a relatively small percentage of the ED volume is from non-urgent kinds of care. So I think that is a red herring. We are really talking about people coming into emergency rooms that need emergency care. We had a number of hearings on the effect of these Medicaid regulations. Going back last year, in June, we were told by a panel of experts that the emergency rooms are at the breaking point and the ability of emergency department personnel to respond to a public health disaster is in severe peril. In November, the American College of Emergency Physicians said that if the regulations we are discussing today went into effect, ``The Nation's public hospitals and emergency departments will sustain a devastating fiscal blow from which recovery may be impossible.'' And the National Association of Public hospitals--and, by the way, public hospitals are the ones really getting hit between the eyes. We had a description of a nonprofit hospital engaged in some purchases, which I am not sure I would necessarily defend myself, but let's not get off on that tangent. We are talking about the impact largely on public hospitals, which are the ones that would suffer the most from implementation of this regulation. The Association of Public Hospitals said, ``These regulations have the potential to devastate essential safety-net hospitals and health systems in many parts of the country.'' So what is it that these experts understand that the two of you don't understand about the impact these regulations are going to have? Secretary Leavitt. Mr. Sarbanes, let me describe for you, as a former Governor, what is happening with respect to public hospitals and where I believe we ought to be turning to remedy this. It is not unusual at all, in our public hospital setting, we agree to pay public hospitals an increment more than what we do normal hospitals. Many States are taking that increment more and essentially taking it off the table, putting it into their general revenues, and then using that increment more to pay the match that they are supposed to be paying for Medicaid. This is essentially a dispute between partners. We are saying to the States, we want you to put up real dollars, not our dollars recycled, so that you don't have to put up as much money. Mr. Sarbanes. Let me take that line of thinking and move it slightly in a different direction. First of all, I want to challenge a premise that I thought I heard in your testimony, that perhaps hospitals are not at the center of any kind of disaster response. And you talk about these other things, convention centers being set up on a short- term basis or schools or so forth. But you both agree that when there is an emergency or a disaster, hospital emergency rooms are where people go, are they not? I mean, I represented hospitals for 16 years. Any kind of disaster or occurrence in the community that created pressure, the first place they come, the first place they come, because they can't think of any other place to go, is to the emergency room. True? Secretary Leavitt. Mr. Sarbanes, there is no hospital in America that can keep enough spare capacity warm all the time just in case we have a major catastrophic event. Mr. Sarbanes. Let me ask you this question. Secretary Leavitt. You can develop a scenario that will blow the doors off any emergency room in America---- Mr. Sarbanes. The doors are already blown off. This is the thing. There is this notion that we are waiting for these surge situations. But as a practical matter, we have a surge already. When you look at the boarding that is going on, the diversions that are going on, the fact that the beds in the hospitals for inpatient admissions are completely full, we are talking about a surge happening right now. Now, let me ask you this question: If a hospital is underfunded, understaffed and underequipped in its main operations and main functions, is it better or less prepared for a surge, in your view? Secretary Leavitt. This question ought to be directed to those who administer and invest in the hospital. Most of the hospitals---- Mr. Sarbanes. I am just asking your personal opinion. If a hospital in its core function is underfunded, underequipped and understaffed, is it better or less prepared for an emergency in a surge? Secretary Leavitt. Obviously they are less prepared. Mr. Sarbanes. They are less prepared. Well, that is the situation many of the hospitals are in. So this fascinating but, I think, largely false distinction between funding that is going just for a surge as opposed to funding that is going to what Medicaid core functions should be, this is a red herring, at best. And we have to strengthen the underlying core function and structure and infrastructure of our public hospital system and other parts of our health-care system if we are going to be able to respond to this surge. Thank you. Chairman Waxman. And we shouldn't be cutting money out of it if they are already not prepared to deal with the problems. Mr. Issa, you are recognized. Mr. Issa. Well, thank you, Mr. Chairman. And I certainly think that it has been good to wait a little while to go today, because I think Mr. Sali's questions, although they seemed to start on a tangent, finished pretty cogently. Secretary Chertoff, the link that you did agree exists between our inability to either stop illegal immigration or the absence of their having an alternate insurance plan that would put them into the normal front-door of hospital and urgent care and other places rather than emergency rooms and trauma centers is a significant part of the overcrowding and the underfunding today. From your side, Homeland Security, you seem to very much agree that is part of the problem you face when looking at surge capacity today, is can you get those centers freed up in time of emergency. So my question to you is, do you feel comfortable that even though a nonscientific, partisan telephone survey found that, lo and behold, these seven trauma centers were overcrowded on a given day, or emergency rooms, that those would be reasonably free-upable for the kind of catastrophic emergencies we might have in the case of a dirty bomb or some other terrorist attack? Secretary Chertoff. Well, I agree with Secretary Leavitt. My understanding--of course, the expertise really resides with his Department, but it certainly makes sense to me. My understanding is that, in a true emergency, people who are in the emergency room using it for primary care or for something less than an emergency would be asked to leave, and many of them would. I also agree with Secretary Levitt there is probably some point at which no emergency center, no matter how well-funded, is going to be able to handle what would be a truly mass event. And that is why we have these backup systems in place. There is no question that a catastrophic event is going to be bad. It is not going to be pleasant. But I think that we would expect the emergency room to clear out all but the priority cases in order to handle them. Mr. Issa. I certainly agree. And certainly there are doctors who have been serving in capacities other than urgent care whose experience in surgery and other areas would quickly be brought in post-triage to do it. Governor Leavitt, you know, the title of this hearing today I think is significant, because it starts off and it says, ``The Lack of Hospital Emergency Surge Capacity: Will the Administration Medicare Regulations Make It Worse?'' Yesterday, or the day before yesterday, I asked the panel-- who all felt that overcrowding was a problem and so on but differed on whether they could handle emergencies. Virginia said, ``We did handle emergencies. We believe we are well- organized, even here in the District,'' while other areas did not. One of the interesting things was, I said, ``Here is a billion dollars. How would you spend it? Would you spend it on training and preparation for an emergency, or how else would you spend it?'' To a person, the panel said, ``I would spend it on day-to-day, routine costs. I would simply absorb a billion dollars.'' Governor, certainly you have the background to understand that $1 billion is a lot of money. But the cost of injuries in America today is estimated to be $300 billion in medical costs. A billion, $2 billion, $3 billion, if it is not used for preparation training, emergency facilities and planning, even $3 billion or $4 billion added into the system, will it in fact increase surge capacity if it is simply spent on a daily basis? Secretary Leavitt. Our significant concern with moneys that we give to States is that they are focused on increasing surge capacity. We have put nearly $7 billion, through different departments other than Medicaid, into emergency preparedness and specifically into surge capacity. And I believe that if we were just to send Medicaid money, it would be absorbed into the hospital overhead. Mr. Issa. And, Governor, following up, because the time is limited, essentially aren't we dealing exactly with that here today? That if, in fact, we don't carefully make sure that these funds do not get diverted and do not cover up for problems, including illegal immigration, to quote the other Member, but all kinds of problems of the underinsured, aren't we, by definition, making ourselves less capable if we don't take action to ensure that it goes into planning and training and preparation, rather than absorbing what clearly appears to be an everyday problem in America that was neither created by September 11th nor would be rectified by a few billion more dollars here or there? Secretary Leavitt. Every community needs a plan, every community needs to train, every community needs to exercise. And that is what much of our money goes to, and should. Mr. Issa. Governor, my time is short, but you did deal with the problems of illegal immigration. You dealt with the problem of your emergency rooms and the impact of the underinsured. Isn't that a separate issue that we should concentrate on finding solutions for but not mix it with today's hearing on surge capacity directly related to 9/11-type events? Secretary Leavitt. We have dealt with three specific and different issues today: surge capacity, the effect of illegal immigration, and Medicaid regulations. All three are separate. All three are important issues. Mr. Issa. Thank you. Thank you, Mr. Chairman. Chairman Waxman. Secretary Leavitt, could you furnish for the record how that $7 billion you claimed is going to help the hospitals? Secretary Leavitt. What I said, Mr. Chairman, was we have spent nearly $7 billion on local and emergency preparedness, including surge capacity in hospitals. And, certainly, we can provide how that has been spent. Chairman Waxman. And how much of that has been surge capacity? Secretary Leavitt. That is not a figure I have. Chairman Waxman. If you could give it to us for the record, we would appreciate it. We now have Mr. Murphy. Mr. Murphy. Thank you very much, Mr. Chairman. Welcome, Secretary Leavitt and Secretary Chertoff. For the last 4 years, before I came to Congress, I was the chairman of Connecticut's Public Health Committee in our legislature charged with this very issue, making sure that we had appropriate surge capacity and everyday capacity in our hospitals. And, Mr. Leavitt, I was reading through your testimony, and it is dazzling, at some level, the amount of bureaucracy and commissions that we have created around this issue: ACD, NVSB, ECCC, ASPR, NRF. And I am sure these are worthy commissions; I am sure they are looking at important questions. But as somebody who is doing this on the ground floor, this is all new to me. As a State policymaker, we knew that Medicaid was not just about supporting people, it was about supporting institutions as well. They are one and the same. You can't help people unless you have institutions that are there and willing to do the work. So the distinction, I guess, is a little bit troubling to me. But we also didn't know too much about these grants that were coming to us, because we really knew that in order to keep these hospitals up and running, in order to keep capacity working, we needed Medicaid. We couldn't do it with grants alone. Mr. Leavitt and Mr. Chertoff, if the staff has it ready, I would like to just draw your attention to a chart. And this, I think, gets at Chairman Waxman's question about the amount of money that is going to hospital preparedness grants. This is, I think, a fair representation of, over the last several years, the amount of money that has been going into hospital preparedness grants, starting at $498 million in 2003, dropping now to a proposed $362 million in the proposed budget for the coming fiscal year--a pretty sharp decrease. And $362 million over 50 States spreads pretty thin. The real rub here is when you compare it to the Medicaid cuts, if we can put that chart up now. Now, this is the grant money that States are getting, $362 million proposed in the next year, compared to the impact of the Medicaid cuts. Now, this is the State Medicaid director's estimates. If you take the CBO estimates, you are still talking about five times the amount of Medicaid cuts as you are talking in grant money to hospitals. And I think every State appreciates that grant money, but it is a drop in the bucket compared to what hospitals are going to face with regard to these Medicaid cuts. I guess I ask this to you, Secretary Leavitt. Do you have concerns that these grants, dwindling year by year, are going to be dwarfed by the size of these cuts? And though those cuts are going to obviously see their way through the entirety of a hospital's operation, no doubt much of it is going to end up in the emergency room. Do you have a concern that these cuts, these Medicaid cuts--you say they are to support individuals; they inevitably have to support institutions in order to support the individuals--are going to dwarf those grants? Secretary Leavitt. Mr. Murphy, the distinction on institutions and people is not one that we have arbitrarily made. It is in the statute. Over time, States have inappropriately claimed Medicaid dollars in a number of categories, which had the direct impact--I know you know this as a State legislator--of crowding out all of the other activities, including the development of public health and emergency systems. Medicaid was not designed, nor is it intended, to support institutions. Money should be directed to people. We support people. We support poor people, pregnant mothers and the disabled. This is not intended to be a hospital entitlement. Now, I understand that they have come to rely on it, in some cases. That is precisely the reason that we are pushing back to the fee-based consultants who are driving this on the basis of their getting a piece of the action to push Medicaid into every area of State government. It is not just emergency preparedness. It is in schools. It is in child welfare. It is in all the places that the States are not adequately funding, they are trying to get a garden hose into the Medicaid fund. Mr. Murphy. But we are not talking about those places today. We are talking about institutions that are indisputably linked to health care, which are hospitals. And the fact is you say it is about supporting individuals, but the money doesn't go to individuals. It goes to institutions. It goes to doctors. It goes to hospitals. It goes to outpatient clinics. Because we know we need those places up and running. So let me just shift to a related question, and this is building off of Mr. Sarbanes's questions. You talk about the fact that ultimately this isn't going to happen in emergency rooms. If something enormous happens, you are going to have to build something outside of the emergency room. But doesn't that capacity, whether it exists in the physical confines of the emergency room or not, rely on the assets that exist right now in those emergency rooms? If we are gutting the capacity of hospital emergency delivery systems, in terms of equipment, in terms of personnel, in terms of expertise, it seems to me, Mr. Leavitt and Mr. Chertoff, that this directly impacts your ability to then move that capacity offsite, even if it isn't onsite at the hospital grounds. Secretary Leavitt. Again, this is a very important point, Mr. Murphy. We are bringing capacity in. In the first 24 hours of an emergency, we are dependent upon local assets. And that is where you clear out the emergency room, you take anyone who is nonessential out of the hospital. You make capacity. Within 24 hours, we have the NDMS system there. We have as many as 6,000 beds we can bring from all over the country. We then go to another phase where we start taking patients into capacity. At any given moment, we know how many hospital beds are available in the area. We are not dependent upon the hospital facilities, except for that 24-hour period. And that is why we exercise and train for all of the other aspects on surge capacity. Mr. Murphy. And I appreciate that. I know enough about how these things work to know that they still do draw upon local resources, they still do draw upon other hospitals, upon other capacity in the system. And, as Mr. Sarbanes and others have suggested here today, we have maxed out both the emergency and nonemergency capacity of our health-care systems to the point that extra capacity, even in the 48 and 72-hour window, simply doesn't exist. Now, you can fly it from in from all over the country, but I think this problem exists across the board. Our medical technicians, our emergency medical personnel, are working 24/7 just to handle existing capacity right now, never mind being able to move over to an emergency when it does happen. My time has expired, Mr. Chairman. Chairman Waxman. Thank you, Mr. Murphy. Mr. Duncan. Mr. Duncan. Thank you, Mr. Chairman. Secretary Leavitt, I have to be very quick because they have a vote going on. But a few days ago, we were given figures that, in the 10 years leading up to 2006, Medicaid payments to Tennessee hospitals went up from $245 million to $607 million. I am sure that you have no idea of what those exact figures are, but do you think that every State has received similar- type increases, more than doubling over the last 10 years? Secretary Leavitt. Well, States have clearly seen dramatic increases. We have seen a dramatic increase in the overall program. Tennessee may have been somewhat unique because of TennCare. Mr. Duncan. And would it be fair, then, to say that, in those 10 years, inflation has averaged around 3 percent a year, so those payments to hospitals have gone up several times above the rate of inflation? Do you think that is fair? Secretary Leavitt. Medicaid is growing at two to three times inflation. Mr. Duncan. Two to three times the rate of inflation. So payments to the hospitals have gone way up over the past 10 years? Secretary Leavitt. The Medicaid money going to hospitals has dramatically increased over the past decade. Mr. Duncan. All right. Thank you very much. Chairman Waxman. Mr. Tierney. Mr. Tierney. Thank you, Mr. Chairman. Thank you, gentlemen, for being here today. Secretary Chertoff, I want to ask you a little bit about your role or your involvement in these Medicaid rules that were issued. In your testimony, you said that, ``Medical surge capacity is a critical element of our local, State and national resiliency.'' But I don't see any evidence, I don't think we have been able to find any evidence of your Department expressing any concern about these Medicaid rules to anybody, and particularly with respect to the impact they might have on emergency rooms or the ability to respond to an attack or a natural disaster. Did you consult with Secretary Leavitt about these rules before they were issued? Secretary Chertoff. No, because I don't think that these Medicaid rules are particularly closely connected to the question of whether there is surge capacity necessary to meet an emergency. Mr. Tierney. So you were aware of them but just chose not to get involved, or you weren't even aware that they were being considered? Secretary Chertoff. I don't think I was particularly aware of it, nor would I have expected to be made aware of it. Mr. Tierney. The staff interviewed Dr. Runge from your staff, your Chief Medical Officer. It is his role, apparently, to coordinate between the Department of Health and Human Services, to make sure that hospitals and the medical system are prepared for a disaster or for an incident. They asked Dr. Runge if he had reviewed or commented on the regulations, and he also said he had no communications with anyone at HHS about it. And he said that there was no discussion within the Department of Homeland Security about the rules. That is pretty consistent with your testimony, as well, on that? Secretary Chertoff. It is. Mr. Tierney. If he supposed to be the point person for medical preparedness, I just don't understand how he completely ignores rules which are certainly going to have some impact? Or is it your position they are absolutely going to have no impact at all on emergency rooms? Secretary Chertoff. Here is where I think we are having some disagreement. Everything has impact on everything. So, in some sense, the economic health of the country has an impact on homeland security. But if I used that logic, I would be involved also in the subprime mortgage crisis, because that affects State budgets; I would be involved in gas tax and gasoline prices, because that has an impact. Even for a Department which has sometimes been accused of having too broad mandate, that goes several bridges too far. Our focus, with respect to working with HHS, is to assure that there is a planning effort under way, that we are identifying gaps, and that we are coming up with specific measures that will plug the gaps. And I have to say I agree with Secretary Leavitt; I don't think that Medicaid funding and reimbursement rules have anything more than a very indirect connection with this issue. And if I took the position that every indirect impact on homeland security made it my business, we would become the Office of Management and Budget instead of the Department of Homeland Security. Mr. Tierney. I do think there is a disconnect between what we are talking about here. I have a difficult time thinking that you don't see a more direct relationship between the status of our hospitals' capacity and emergency rooms' capacity to deal with these things than a mortgage. That is a bit of a difference there between the two, and I would hope you would get that distinction. Secretary Chertoff. No, I don't say that I don't think emergency care and the health-care system isn't more connected. I think that Medicaid reimbursement, which is not specifically targeted to putting money away for emergencies, is, I think, several degrees of separation from the kinds of much more specific issues that we are focused on, in terms of getting ready for emergencies. Mr. Tierney. But I find it interesting that your Department didn't even look at the prospect that reducing Medicaid funding might have an impact on hospitals' overall operations, including the impact on emergency rooms and capacity in case of a surge incident. I would think that is the type of thing that you are assigned to do and Dr. Runge is assigned to do, to at least raise the issue and think about it and move on from there. The staff asked Dr. Runge how he justified this lack of communication with HHS about the rule. What he said was, ``We are focused on threats that can kill hundreds of thousands, not hundreds.'' A little insensitive, I would think, to---- Secretary Chertoff. Well, I wasn't there for the interview; I can't read his mind. But I think what he was trying to draw a distinction between is the very real issue of day-to-day capability of the medical system to deal with day-to-day kinds of issues, which is a perfectly important and significant matter but not one that falls within the purview of my Department, as compared to dealing with the issues that do rise to the level or do specifically involve homeland security, like a pandemic flu or a major catastrophe, where we do focus on the issue of surge. But our main focus is on those matters that have a direct relationship. Are we stockpiling enough? Do we have a plan? Do we have a delivery mechanism? Do the localities have a plan? And there we do interface with HHS, not only Dr. Runge, but I personally talk to Secretary Leavitt about these issues. But much more tightly related to the specific need to have an emergency preparedness capability than Medicaid funding, which has to do with the overall economic health of the medical system, which is, frankly, a much broader issue than my Department's focus. Mr. Tierney. Well, I guess it could be seen that way, but it could be narrowed down to when there is a serious, severe cut in financing, it will affect the operations of a hospital, including those that you are directly concerned with. I would like to think your Department gets involved at that capacity. That is not indirect; that is pretty direct. My time is up, and I yield back. Thank you. Chairman Waxman. The gentleman's time has expired. Ms. Norton. Ms. Norton. Thank you, Mr. Chairman. I want to thank both these witnesses for being here. I am particularly grateful for this hearing, because I am afraid I am more deeply implicated than some because of my representation of the District of Columbia. I have worked closely, of course, in my work on the Homeland Security Committee with Secretary Chertoff. Secretary Leavitt, I worked with your predecessor on something called ER-1. I am particularly concerned about this place, not only because I represent 600,000 people here, but because all of official Washington is here, 200,000 Federal workers, and because this is a prime target for terrorism. This discussion about trying to separate out Medicaid from other money is important because we want money used for what it is intended. But you certainly can't treat a hospital as if it were not an organism with core functions that treat private and poor patients alike, as if you could collapse the part that treats Medicaid patients. And I think that is what some of us have been trying to get at. I want to ask you about the hospitals here. We have three trauma centers here. Two of them were surveyed in this survey, and they were extensively above capacity. No available treatment spaces in the hospital. Only six had intensive care unit beds. One could not participate in the survey because it was so overcrowded that it had to stop taking, accepting new patients at all. My good friends on the other side of this dais cite the Washington Hospital Center emergency room as a model for the country. It is a very good emergency room. That is what I worked with on so-called ER-1. I will get to that in a minute. But since they cite the Washington Hospital Center, I went to the head of the emergency room, Dr. Mark Smith, and Dr. Smith confirmed the findings of the survey and, in addition, said he had twice as many patients as he did treatment spaces. They are putting them in the corridors and administrative offices. They are putting them in waiting rooms. And he said he had a major problem with preparedness. Now, I understand triage. I also hope we are not ever in the position of what I would believe would be chaotic triage, if everybody surged in one place. For that reason, here in the Nation's Capital, I have been working with the administration-- actually we have almost gotten it through several times--on at least one hospital that would have surge capacity, so that everybody would know in advance, don't put all these Federal workers close to the nearest hospital. This is the one that is prepared. It has huge capacity--it would have a huge capacity. A lot of private money would go into this, some Federal money. Now, my question is this: If you cut billions of dollars of what amounts to safety-net funding from hospitals, you are also including these trauma centers here in the Nation's Capital. Can you assure this committee that, even with such very severe Medicaid cuts, the hospitals in the Nation's Capital are prepared for a mass event here and to accept patients in the event of a mass event here? I would further ask Secretary Leavitt if he supports ER-1. First, I want to know, are you saying to this committee, in the face of a survey that you are aware of, that in the event of a major or mass event here, that the hospitals, even with the cuts that are on the table, could, in fact, manage that event? Secretary Leavitt. Ms. Norton, I will tell you that the Washington, DC, area engages in regular planning exercises I think as well as any place in the country. I want to restate: Am I saying that surge capacity is acceptable everywhere in the country? No. Ms. Norton. I am not asking about that. I am asking about the place where Members of Congress, the President of the United States, where members of the Cabinet, where 600,000 residents are here, where 200,000 workers are here, three traumas centers--I am being very specific. I am not focusing on elsewhere. I am focusing on target No. 1. Can you say you are prepared? Secretary Leavitt. I am not the person to answer that. The person in my Department would be Rear Admiral Vanderwagen, who was not invited to the hearing today. And I am sure he would be happy to meet with you and give you his reaction to the preparedness. Ms. Norton. I have to indicate that, as the Secretary, I would think you would know whether or not the Nation's Capital is prepared for a mass event. Secretary Leavitt. I live here, just like you do, and I am anxious for that to be the case. Ms. Norton. And that troubles me, both as a member of the Homeland Security Committee and as a member of this committee, that you cannot answer that question. Do you support ER-1 surge capacity? Secretary Leavitt. Is the project at George Washington? Ms. Norton. It is the project at Washington Medical Center. Secretary Leavitt. I am aware of the project by title. I do not know enough about it to respond at this hearing. If you would like, I would be pleased to respond in writing. Ms. Norton. I very much appreciate it. And thank you, Mr. Chairman. Chairman Waxman. Thank you, Ms. Norton. Mr. Cummings. Mr. Cummings. Thank you very much, Mr. Chairman. Secretary Leavitt, perhaps the thing that most confuses me about your actions is why you did not consider the impact of your Medicaid regulations on emergency preparedness. Last June, the committee had a hearing on the state of emergency medical care in the United States. At the hearing, concerns were raised about the effect of the Medicaid regulations on hospital emergency rooms. As a result, the committee wrote to the Centers for Medicare and Medicaid Services to ask whether CMS, which issued the rules, had consulted with the Assistant Secretary for Preparedness, who is the official in your Department in charge of emergency response. Astonishingly and unbelievably, CMS responded that it, ``did not specifically request input from the Office of the Assistant Secretary for Preparedness because that office is not likely to have expertise in Medicaid financing.'' The committee wrote you again in November. In this letter the committee specifically requested, ``all documents relating to the potential impact of the Medicaid regulations on emergency care and trama services.'' In February, the Department responded to the committee's request. I want to read to you from this letter. And it says, ``The Department has not found responsive documents.'' According to this letter, your staff searched for responsive documents in five different parts of the Department: the Office of the Secretary, the Office of the Assistant Secretary for Preparedness, the Health Resources and Services Administration, the Centers for Disease Control, and CMS. Yet not one of those offices had done any analysis of the impact of the regulations on emergency care. Secretary Leavitt, how can you possibly explain this? Hospitals across the Nation are telling us that your regulations will devastate their emergency rooms, yet you did not even consider this issue, according to what I just read. Secretary Leavitt. The rule change we are proposing is not about surge capacity or hospital health. It is about States who have been claiming inappropriately funds that they are using to recirculate to pay their fair share with Federal funds. Medicaid is not a program to support hospitals. Medicaid is a program to support people who are poor, people who are pregnant and people who are disabled. It was not intended nor is its purpose, nor should it be managed, to be the source of funds for surge capacity. Mr. Cummings. Let me just go a little bit further. You were specifically asked to consider the impacts of your rules on trauma centers and emergency rooms. Over a year ago, Chairman Waxman and over 150 other Members of Congress wrote to you to urge you to consider these issues. Let me read to you from our letter: ``We are writing to request that you withdraw the proposed rule. The proposal would threaten the capacity of safety-net hospitals to deliver critical but unprofitable services, such as trauma centers, burn units and emergency departments.'' Yet, still, you prepared no analysis. This appears to be a case of willful blindness. Perhaps it would be better stated if I said it appears to be ``eyes wide shut.'' It seems that you are deliberately ignoring the impacts that your rules will have on emergency care and preparedness in our Nation. That is irresponsible, and, to be frank with you, it is quite dangerous. Secretary Leavitt, the preamble to the proposed Medicaid regulations read, ``With respect to clinical care, we anticipate this rule's effect on actual patient services to be minimal. While States may need to change reimbursement or financing methods, we do not anticipate that the services delivered by governmentally operated providers or private providers will change.'' In response to these regulations, your Department received over 400 written comments, all of which expressed opposition to the rule or to portions of the rule. And I would like to read just a sample of one of those. It is from the Society of Academic Emergency Medicine. And it says, ``This proposal will jeopardize the viability of public and other safety-net hospitals. It will also jeopardize the viability of our emergency medicine teaching programs, which has long-reaching downstream effects on the quality of emergency care in this country. We believe that Medicaid cuts of this magnitude projected under this proposed rule will adversely affect access and the viability of our Nation's safety-net providers.'' So I am just wondering, do you have a comment on that? Secretary Leavitt. Yes, I do. This rule is about States not paying their fair share, and it is a dispute between partners. We are mutually committed. If States will step up and do their share, we will ours. But this is about paying for people, not for institutions. We are following the law. We are trying to push back where people or States and other programs within State governments are trying to make up for deficiencies that have occurred in State governments by tapping Medicaid funds. And someone needs to do it, because the Medicaid program is unsustainable in its current course; I made the point earlier. Many of the programs in States are being crowded out by Medicaid. And it is being crowded out because we continue to use it for virtually every aspect of State government. Anyone in State government who thinks they can find some connection to Medicaid is attempting it. And we have to do this in a way to keep the integrity of the fund, so that we know we are paying for health care for people, not for institutions, and we are not making up for States who aren't doing their share. Mr. Cummings. I see my time is up. Chairman Waxman. Secretary Leavitt, with all due respect, I think you are ignoring reality. You are saying that you want to cut back on a system that is getting Federal dollars inappropriately, and they should make up the money at the State and local level. They are not going to be able to make up that money in a recession. The income is not coming into the States. And you never asked your partners, the States, what the impact would be to make these kinds of withdrawals of the Federal share of the Medicaid funds that go to the institutions, especially public hospitals that are funded exclusive by the taxpayers. At the minimum, I would have thought that you would have wanted to ask the question of what the impact would be, so you would know. You insist that is not going to have this kind of impact. Yet, when you put our rules, the Society for Academic Emergency Medicine said, ``This proposal will jeopardize the viability of public and other safety-net hospitals. It will jeopardize the viability of our emergency medicine teaching programs.'' Parkland Hospital in Texas said they received Medicaid payments of $90 million annually and that, without this funding, Parkland may be forced to drastically scale back their services in the Trauma I center, the level Trauma I center. You have all these others--the president of the University of California, the University of California academic medical centers. You have all these comments. And we looked at the rulemaking record; the fact is you ignored these comments. You didn't adjust the policy in response to these comments in the final rule, and you did prepare an analysis to the effect of the Medicaid regulations would be minimal impact on care being provided by the States. How can that be? Isn't that irresponsible? Secretary Leavitt. Mr. Chairman, it is responsible for me to follow the law and assure that the States are doing their job. Otherwise, we are not being a wise steward of limited Medicaid funds. This is a dispute between partners, between the Federal Government and the States. And the Federal Government is saying, you can't take money we have given you extra for these hospitals, put them back into your general fund, and then use them to pay your share. Just give us real money, give us value, give us--for real patients. This is not about surge capacity. It is about a relationship between the States and the national Government---- Chairman Waxman. The consequences will be the institutions that provide the safety net to the very poor in our society will not be able to continue to function and provide those services. It just seems to me you are judging your actions on an ideology without having established the record. You didn't come to Congress and ask for those changes. You are trying to put them into effect on your own. Fifty Governors have asked us to at least put a halt on this so they can be studied, which they should have been studied before they were put into place. An overwhelming majority of the House of Representatives has put a hold on these regs until we can look at them further. I think that you ought to withdraw these regulations and let's see what the impact will be. Let's know that we are not doing any harm to the ability for hospitals around the country to deal with the problems that they may face, not just day to day, but in a terrorist attack. Secretary Leavitt. It is not surprising to me that you can unite 50 Governors around the proposition that the Federal Government should pay their share. And that is essentially what this amounts to. Many States have improperly used money that has come from the Federal Government for the purpose of supporting the hospitals we are talking about, have taken it off the table, and then used it to pay their share. This is about States not paying their fair share. And I would think we would all be united in saying, if we are going to have a partnership, then everyone out to pay real dollars for real value for real patients. Chairman Waxman. Did you consult with Secretary Chertoff to tell him that there may be some impact around the country on the ability to deal with a terrorist attack? Secretary Leavitt. This is a dispute between the Federal Government and the States on Medicaid financing. Chairman Waxman. You didn't inform Secretary Chertoff of that? Secretary Leavitt. We regularly consult on the larger strategic issues related to our joint mission. This is not one of them. Chairman Waxman. Did you do an evaluation to know what the impact would be on these hospitals if these regs went into place? Secretary Leavitt. Medicaid is not intended to support institutions. It is intended to support people. Chairman Waxman. But it does support these institutions, because people without insurance go to these hospitals. People who are injured go to these hospitals. If you withdraw the money from the hospitals because you have a theory that the States ought to come up with more money, it means, as we were told by Dr. Roger Lewis, who is an emergency room physician at UCLA, a nationally recognized expert in hospital emergency preparedness, he said, ``Those of us who work on the front lines of the medical care system believe it is irrational that an emergency care system that is already overwhelmed by the day-to-day volume of acutely ill patients would be able to expand its capacity on short notice in response to a terrorist attack.'' He said, ``If a bomb went off in Los Angeles and injured hundreds or thousands, LA would not have the emergency room capacity to care for the wounded.'' In your statement to the Congress, you emphasize the support the Federal Government is giving States and localities to improve this emergency preparedness. And we asked Dr. Lewis, and he said they were getting $433,000 in a preparedness grant, and he was very grateful for it, but the cost of these Medicaid changes would mean they would go without $50 million. He said that is 100 times more than the Medicaid cuts they would get on these preparedness grants, and they are going to be in very, very sad shape. Do you take what he had to say seriously? Do you think he is just fronting for the States because they want to rejigger their money around? Secretary Leavitt. Mr. Chairman, over the course of the last 3 years, I have been in virtually every State and met with the emergency community, and the record is replete with my statements of concern about surge capacity. It is not at the level we want it to be. We have many areas in which we can improve. But Medicaid is not the source of funds to do that. If the Congress of the United States views that there is a need for more dollars, we have ways in which we can funnel directly to the hospital funds that are necessary to improve their surge capacity. Medicaid was intended to be for people, not for institutions. And every institution I know would like to drag a garden hose over into the Medicaid fund and be able to tap it, because their fund isn't what they would like it to be. We need to be disciplined. We need to ensure that these disputes are resolved between the States and the Federal Government so that we have a true partnership, not just one that relies entirely on the Federal Government. Chairman Waxman. Well, I must say, with all due respect, your actions make absolutely no sense. The tiny grants you are giving to hospitals can't possibly offset the impact of cutting billions of dollars from those programs. I must say, as we conclude this hearing, I find it very discouraging. We know the Nation's emergency rooms are already at the breaking point. We know a terrorist bombing is a predictable surprise. We know that local emergency room capacity is critical to saving lives in that golden hour following an attack. We know that public and teaching hospitals operate many of our Nation's most critical emergency rooms and trauma centers. We know that the Medicaid regulations will reduce funding to these institutions by hundreds of millions of dollars each year. We know that these cuts will further undermine the ability of these hospitals to respond to a terrorist bombing. We know that these regulations will go into effect in 3 short weeks. And yet the Secretaries that are in the position to avoid this harm will not take any action. I think it is regrettable. I must say, this is not just a disagreement. I think it is a substantial breach in what I think is our mutual responsibility to make sure that we can deal with a homeland security attack, which could amount to a tragedy. I thank you both for being here. We hear the bells; there is a vote on the House floor. I do want to ask unanimous consent that the record be held open for Members to ask further questions and get responses in writing. We stand adjourned. [Whereupon, at 11:15 a.m., the committee was adjourned.] <all>