You might have seen or heard the advertisements decrying Gov. George Pataki's veto of $1.3 billion in funding for the state's hospitals and nursing homes. The advertisements, paid for by a health care union and a hospital trade group, paint a bleak picture: emergency rooms, hospitals and nursing homes closing, cuts to services ... But local health officials say they don't expect the worst-case scenarios. For now, they say, hospitals will handle the cuts in other ways, mostly by reducing investments, such as in new equipment and technology.
Local nursing homes are also planning cutbacks. Seniorsfirst Communities and Services, which includes assisted living and nursing homes, has laid off some workers, among other cuts, said James E. DeVoe, president and chief executive. Seniorsfirst will continue to "preserve the basic and critical resident needs," he added.
The total local impact? Hospitals and nursing homes in the nine-county area are losing out on about $93 million the amount they were to get in the Legislature-approved state budget, said the Rochester Regional Healthcare Association. The Legislature had boosted some Medicaid payments, while keeping what is considered the equivalent of a cost-of-living increase for Medicaid, among other moves. But Pataki's vetoes, which he said were needed given spiraling Medicaid costs, come as hospitals and nursing homes struggle with what they say are inadequate state and federal reimbursements for health care for people who depend on Medicaid, the governmental health insurance program for the poor.
"The Medicaid cuts exasperate the situation we're already in in which we don't have enough to sustain our capital needs going forward," said Stewart Putnam, executive vice president and chief operating officer of Unity Health System, which operates Park Ridge Hospital as well as some nursing homes.
The Assembly and Senate overrode most of the vetoes, but Pataki said he won't give out some of that amount mostly the health care funding because it was added to the budget in a way that violates the state constitution. The veto is necessary because more money in the budget goes toward health care than any other item, according to Pataki spokesman Scott Reif. Reif said Medicaid's growth has hampered local governments and pushed up residents' taxes.
The program needs to be, "more efficient and more affordable," Reif said. Of the advertisements, Reif said, "It's sad that Albany special interests, which have been resistant to virtually every single one of the sensible reforms advanced by the governor, are once again resorting to the same old tired scare tactics."
But the Healthcare Association of New York State (HANYS) said it plans to take the issue to court, said Bill Van Slyke, spokesman. "We don't think any court would seek to empower one branch of government solely with the ability to decide what is or what is not constitutional," he added.
Local hospitals and nursing homes are hoping for a compromise, because a court challenge could take a while. Finger Lakes Health which operates hospitals and nursing homes said a big chunk of its expected $1.67 million loss in Medicaid funding in the upcoming year is because of cuts to the extra money they get for having two hospital-based nursing homes, said Chief Executive Jim Dooley.
That loss will wipe out much of the system's yearly surplus. "We'll be right back at ground zero," he said. "But we're hopeful that the governor and the Legislature leaders will get to a resolution," he added. "They're really tinkering with the most fragile people in the state."
Strong Memorial and Highland hospitals are also expecting an annual hit of $7 million to $8 million in funding from Medicaid and Medicare the governmental health insurance for the aged that is also planning cuts, said Len Shute, chief financial officer. This will leave less money for reinvestments, such as replacing older, more high-tech equipment in areas such as radiology or cutting back on information technology investments, he said. And what about layoffs?
Shute said it's "always a possibility," but that nothing is planned. Any staff reductions would likely be through attrition. "It looks like this will probably be our worst year if the governor's proposal goes through for payment changes that we've had since the (1997) Balanced Budget Act," Shute added.
Costs
Here is what Pataki's vetoes cost some local hospitals, according to the Healthcare Association of New York State:
* Strong Memorial Hospital in Rochester: $4.45 million annually
* Highland Hospital in Rochester: $ 1.2 million annually
* Rochester General Hospital: $2.18 million annually
* Unity Health System, which includes Park Ridge Hospital in Greece: $1.06 million annually What's at stake The quality of health care. Hospital and nursing homes say the cuts will hurt their ability to afford staff and reinvest in new equipment and technology. |
