More than 350 healthcare chief executives, administrators, board chairs and trustees representing hospitals and healthcare organizations from New York state convened in Albany on Wednesday to oppose $1 billion in provider taxes and cuts.
The rally is being held over Governor David A. Paterson's (D) Executive Budget proposal, which calls for an additional $1 billion in healthcare provider taxes and cuts, on top of nearly $4 billion in cuts already enacted through six different budget actions over the last two years.
"We came to Albany today to explain to lawmakers that our hospitals, nursing homes, and home care providers are reaching a financial tipping point. Any additional taxes and cuts will have negative, real-life implications in their home districts," said Daniel Sisto, the president of the Healthcare Association of New York State. "In the last ten years alone, 51 nursing homes and 29 hospitals have been forced to close, resulting in thousands of lost jobs and eliminating access to critical health care services in communities throughout our state."
The Governor's proposal would significantly increase the tax burden on hospitals, nursing homes, and home care providers at a time when they are already struggling to remain afloat, ralliers told the public. It would also cut an additional 20 percent from the indigent care pool, further weakening the already fragile healthcare safety net for New York's most vulnerable populations, they said. For example, New York City's Health and Hospitals Corporation-a public provider of uncompensated care to low income, uninsured populations-stands to lose hundreds of millions of dollars under the Governor's plan, and, as a result, forecasts a deficit of $1 billion for its upcoming fiscal year, they said.
"At a time when uncompensated care costs continue to rise, and reimbursement rates continue to fall, the Governor's proposal is devastating for healthcare providers and the communities they serve. New York's hospitals, nursing homes, and home care providers remain dedicated to their mission to improve and protect the health of all New Yorkers; however, it is unreasonable to expect providers to assume full responsibility for maintaining the healthcare safety net when we are facing our seventh round of taxes and cuts in just two years," said Sisto.
In addition to urging lawmakers to reject Governor Paterson's budget proposal, healthcare representatives from around the state provided smarter revenue options that could be used to bridge the state deficit and eliminate the proposed cuts.
President Obama's budget includes an extension of enhanced Federal Medical Assistance Percentage (FMAP) funding to states that will provide $1.06 billion in the current fiscal year (FY), and recently, federal HHS Secretary Sebelius announced plans to reduce the amount states would have to pay for Medicare drug benefits, yielding an additional $407.8 million for New York State in FY 2010-2011. Ralliers suggested that a portion of this $1.5 billion in new federal funding could be used to fully eliminate Governor Paterson's proposed healthcare provider taxes and cuts.
"The federal government is prepared to provide New York with billions of dollars for healthcare services. It is critical that our elected leaders do not miss this opportunity to protect jobs and healthcare services in their communities. Our state's healthcare delivery system and economic recovery are in jeopardy," Sisto said. "The Legislature must act now to protect both."