Proposed State Budget Threatens Healthcare Once Again

February 2nd, 2006
SARANAC LAKE – Governor Pataki’s Executive Budget proposal for 2006-2007 would cost hospitals more than $430 million in one year and nursing homes more than $199 million. If this budget passes in April, every one of New York State’s 229 not-for-profit hospitals, including Adirondack Medical Center, would lose critically needed funding, according to the Hospital Association of New York State (HANYS). The specific financial impact on Adirondack Medical Center, under this proposed budget, would be a total loss of $97,000 in the next year through many different facets. This budget would have a direct impact on mental health services, detoxification services and the Medicaid trend factor while indirectly affecting AMC through losses from expanding Medicaid enrollment, a reduction in workers’ compensation, uncompensated care from co-payments and health coverage elimination. These cuts would eventually lead to reduced access to care, and the reduction and/or elimination of services. It would also depress the morale of an already stressed health care workforce and hurt the local economy. The two area nursing homes, Uihlein Mercy Center in Lake Placid and Mercy Healthcare Center in Tupper Lake who will soon come under AMC’s umbrella, will also be negatively affected by Pataki’s proposed budget. The budget would reduce Medicaid payments to upstate New York nursing homes by $199 million for 2006-2007. According to Uihlein/Mercy Corporation’s Chief Financial Officer, William Chapin, the immediate “big money” item is the elimination of the Medicaid trend factor, a component that allows for reimbursement rates to grow each year as the cost of services does. Under the present Medicaid reimbursement methodology, the elimination of the trend factor would create a $200,000 negative impact on Uihlein/Mercy annually. This elimination would account for $145.4 million of the reductions in 2006-2007. According to HANYS, due to artificially low government and private insurance reimbursement rates and skyrocketing operating costs, the overall financial health of New York’s not-for-profit hospitals has grown increasingly poor over the last decade. In 2004 alone, hospitals statewide lost $127 million, increasing their cumulative losses to $2.3 billion since 1998. Meanwhile, in 2004, New York health maintenance organization (HMO) profits totaled $847 million, bringing their total profits to $3.7 billion over the past six years. On March 8th, AMC employees will travel to Albany to participate in HANYS Advocacy Day, a rally of New York State hospitals at the steps of the State Capitol to advocate against the current proposed state budget. In the meantime, we are encouraging employees and area residents to send a postcard, e-mail or write a letter to our local state representatives, Senator Elizabeth O’C. Little, Assemblyman G. Christian Ortloff and Assemblywoman Theresa Sayward, and ask them to vote NO on Governor Pataki’s proposed health care taxes and cuts! Preprinted postcards are available in the lobby at AMC Saranac Lake for those interested in sending the message to our legislators. With everyone’s help, we can send a strong message and have a positive impact on this budget. For contact information, call Cheryl Breen-Randall, Executive Director of Community Relations, at 897-2348, or Beth Donahue, Communications Manager, at 897-2341.

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	AMC is accredited by the Healthcare Facilities Accreditation Program.
	Adirondack Medical Center's Bariatric Program and Dr. Michael Hill have been designated as a Center of Excellence by the American Society for Bariatric Surgery.