State Budget is Devastating to Hospitals

    SARANAC LAKE – Despite the state legislature’s adoption of a budget that is devastating to hospitals, Adirondack Medical Center will continue to advocate for systemic solutions to the health care challenges.
    Regressing to the tradition of “three men in a room” to decide a state budget, health care spending was cut by $2.3 billion in the coming fiscal year.  This is $1.2 billion less than the governor proposed, but in this time of shared sacrifice hospitals are absorbing the largest cut of all budget sectors.
    “It is unfathomable to us that an issue as critical as health care is once again bearing the brunt of the budget cuts,” said Chandler Ralph, President and CEO of Adirondack Medical Center.  “Hospitals are, first and foremost, where sick people go to get better, and secondly are major employers and key drivers of local economies.  The governor is absolutely correct that this budget is life threatening when it comes to the loss of critical health services and patient care cuts.”
    Among the areas where AMC is hardest hit are reimbursement reform, trend factor cuts and the gross receipts tax.  These areas represent an overall $579,000 cut in funding to AMC under the state spending plan.  It is worth pointing out that all of these cuts were completely avoidable had the state legislature used the billions of available federal Medicaid stimulus dollars, known as FMAP, to protect patient care and prevent damaging taxes.
    Under reimbursement reform, the governor has expressed his desire to invest more in preventive outpatient care, by shifting reimbursement from inpatient care.  While in principle the concept of fostering improved preventive care makes sense, the state is essentially robbing Peter to pay Paul by shifting funding from other hospitals to pay for this plan.  This will leave many hospitals unable to maintain current levels of care.
    The trend factor accounts for the yearly increases associated with the cost of doing business.  The current budget cuts the trend factor to 2007 levels, which can impact staffing and salaries.
    Last but not least is the gross receipts tax of .35 percent on every dollar of revenue AMC generates.  Better known as the “sick tax,” this measure will further erode the already meager excess revenue that not-for-profit hospitals such as AMC depend upon to reinvest in new equipment, staff and training each year.
    AMC has maintained throughout this budget process that health and human services are all the more vital during difficult economic times.  The state’s planned closure of the minimum-security prison Camp Gabriels is the latest jarring example of the challenges our local economy face, but also stresses the need to make sure no area residents are denied vital health care services in their time of need.
    As the state moves forward with the reform elements of the budget plan, such as the shifting focus to outpatient and preventive care services, AMC will continue to serve as a resource to ensure legislative action is based upon an informed decision making process. 
    “Sen. Betty Little and Assemblywomen Janet Duprey and Teresa Sayward understand the vital service AMC provides to the Tri-Lakes region, and we are forever grateful for their unwavering support,” noted Ms. Ralph.
    AMC is the leading provider of health care services in the Adirondack Park.  The Medical Center operates hospitals in Lake Placid and Saranac Lake; skilled nursing and rehabilitation facilities in Lake Placid and Tupper Lake, and primary care clinics in Keene, Lake Placid and Tupper Lake.

Policies & Terms - Laboratory Test Collection Information - Sitemap

	AMC is accredited by the Joint Commission. Click here to view the Joint Commission Public Notice.
	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.