Rounds of State Budget Cuts Strain Health Care Providers

SARANAC LAKE - Repeated rounds of state budget cuts over the past 17 months have resulted in a $649,000 impact in Adirondack Medical Center's bottom line.

Included in those budget cuts is the gross receipts sales tax, also known as the "sick tax," which has siphoned $112,000 in revenues from AMC since April 2008.  These cuts and taxes are considered unbudgeted and unanticipated expenses that leave the Medical Center with little recourse.

While AMC has not had to cut the programs and services it provides to residents of the Tri-Lakes region, it has been forced to pursue other avenues for mitigating the impact of the state budget cuts.

"From this point forward, we must do everything we can to fight further cuts," said Chandler Ralph, AMC President & CEO.  "We cannot absorb any additional cuts."

In the coming year, salaries of non-union AMC employees, including management and executives, is being held to a lower percentage increase than in years past.  This is in line with the projected Consumer Price Index, but may not reflect other cost of living increases that residents of the North Country endure on a yearly basis.  AMC is honoring the current contracts of union membership, which include stipulations for annual salary increases.

Likewise, department managers and employees are paying strict attention to overtime in order to keep those costs at a minimum.  Other cost-saving measures have involved the re-negotiation of certain vendor contracts, which in several cases realized significant savings.

On the other hand, there are the necessary expenses AMC must incur to protect the future viability of the facility.  For example, the cost associated with recruiting physicians can be expensive, but the value to the Medical Center and community is invaluable.  Other necessary expenses include upgrades and replacements of equipment along with costly day-to-day building maintenance to ensure quality care at all AMC facilities

On the federal level, AMC is keeping a close eye on projected Medicare cuts under the Health Care Reform proposal in order to expand coverage to the uninsured.  AMC and its Uninsured Task Force have long advocated for health insurance for all individuals, however, additional reimbursement cuts to hospitals and medical providers will further undermine access to care regardless of expanded coverage to individuals.

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