HANYS: $1 Billion Budget Hit Undermines Health Care and Economic Recovery

Governor Paterson’s Executive Budget for state fiscal year (SFY) 2010-2011 would impose about $1 billion in cuts and taxes on hospitals, nursing homes, and home care providers, according to HANYS’ initial evaluation of the Governor’s proposals.

In addition to targeting health care providers for another round of cuts and taxes, the Governor proposes more disruptive redistributions of critical health care dollars. Providers have already shouldered billions in cuts and taxes from budget actions over the past two years.

“The Governor’s proposal to cut another $1 billion in health care funding is not public policy; it is anti-public policy, especially when one considers that 29 hospitals and more than 50 nursing homes have closed in the past ten years,” commented HANYS’ President Daniel Sisto in a press statement. “The Governor’s actions compel our members to choose between two unfortunate courses of action: Seek higher payments from private insurance companies to make up for government underpayments, and/or continue the growing pattern of service reductions and job layoffs that are the legacy of the last five budget-cutting actions that have occurred in just the last two years.”

Mr. Sisto cited recent closures of hospitals, nursing homes, cancer treatment centers, and well child clinics, and the loss of thousands of health care jobs across the state “hitting hardest those communities where the local hospital is the largest employer and an economic anchor.”

“Sound economic policy would protect businesses and save jobs. The Governor’s anti-economic policy will deepen the impact of the recession by driving up employer insurance costs and causing more private sector and health care sector job losses,” said Mr. Sisto “Sound public health policy would preserve the health care safety net that protects the growing ranks of uninsured and unemployed. The Governor’s anti-public health care policy would further undermine and impede the ability of health providers to respond to the growing demand for care.” Contact: Nicholas Henley