The Hospital & Healthsystem Association of Pennsylvania is opposing Gov. Ed Rendell’s proposed 2010-2011 state budget, which could cut hospital Medicaid payments by nearly $31.9 million.
The Medicaid budget cuts would cause the state to lose federal matching funds, costing an estimated $73.4 million total.
“At a time when Medicaid enrollment is increasing and more people are losing health insurance due to unemployment, payments to hospitals who are the healthcare safety net for these Pennsylvanians cannot be cut,” said HAP President and CEO Carolyn F. Scanlan.
Statewide unemployment is hovering near its highest level in 25 years and is expected to continue at high levels, Pennsylvania’s hospitals, meanwhile, continue to be the largest and most stable employers in their communities. While non-farm employment in the state decreased by 2.59 percent last year, direct hospital employment declined only 0.15 percent.
“Pennsylvania’s hospitals are mindful of the budget realities facing Pennsylvania. But the governor and lawmakers need to ensure that hospitals remain viable employers in their communities, where they can provide access to quality care, jobs and job-growth opportunities, support to other businesses and overall stimulus to local economic activity,” said Scanlan.
With a potential infusion of approximately $850 million in additional federal Medicaid dollars, HAP officials say it's essential that funds be used for their intended purpose, not diverted to fill holes elsewhere in the state budget.
“The governor’s proposed state budget cuts put the state’s leading employers at risk by threatening one of the commonwealth’s few sources of economic and employment stability – and jeopardizing patient access to the healing, health and hope our hospitals provide to Pennsylvanians 24 hours a day, every day of the year,” Scanlan said.
HAP is a statewide membership services organization that advocates for nearly 250 acute and specialty care, primary care, sub-acute care, long-term care, home health and hospice providers.