WASHINGTON (CNN) - Vice President Joe Biden announced Wednesday that a deal has been reached with hospitals to help fund health care reform.
Biden said the hospital industry has pledged to contribute $155 billion in Medicare and Medicaid savings in the next decade.
"We're here today to make our health care system healthy again," the vice president said in announcing the agreement.
"Hospitals have acknowledged that significant health care savings can be achieved by improving efficiencies, realigning incentives to emphasize quality care instead of quantity of procedures," Biden said.
"In the last several weeks, they've been working with (Senate Finance Committee) Chairman (Max) Baucus and are coming forward with a proposal that produces real savings in federal health care spending. Savings that will be applied toward the president's firm goal ... of enacting health care reform that is deficit neutral."