State and Federal Budget Proposals Threaten Health Care Once Again

February 14th, 2007
     SARANAC LAKE - Adirondack Medical Center faces $2.4 million in cuts as a result of the draconian budget proposals tendered by New York Governor Eliot Spitzer and on the federal level by President George W. Bush.
     State-wide, hospitals could lose a staggering $9.9 billion in total over a five-year period under the proposed budgets of President Bush and Governor Spitzer, according to analysis just released by the Healthcare Association of New York State (HANYS), the only statewide hospital and continuing care association in New York State.
     President Bush's proposed federal fiscal year (FFY) 2008 budget includes provisions that would reduce Medicare and Medicaid payments to hospitals and other providers by $7.5 billion over the next five years including $2.8 billion in Medicare cuts and an additional $4.7 billion in cuts to Medicaid payments. Under Governor Eliot Spitzer's 2007-2008 Executive Budget plan, hospitals in New York State would lose $2.4 billion over the next five years as a result of across-the-board Medicaid funding cuts.
     "These budget proposals are a double-barrel shotgun aimed directly at the quality health care we provide to the Tri-Lakes Region," said Patrick Facteau, Vice President of Finance for AMC, "The $383,000 in state cuts, if approved, would dramatically affect the level of staffing necessary to provide consistent and quality patient care."
     These budget proposals will also have an impact on the skilled nursing and rehabilitation facilities that joined with AMC on January 1, 2007: AMC-Mercy in Tupper Lake and AMC-Uihlein in Lake Placid.
     The Spitzer budget represents a loss of $75,000 for AMC-Mercy, and $134,000 for AMC-Uihlein. The Medical Center itself is facing a loss of $383,000 under the budget proposed by Spitzer. The governor is proposing the elimination of the Medicaid trend factor, which helps health care facilities to keep pace with the ever-growing cost of pharmaceuticals, energy, technology and other operating expenses. Likewise, Gov. Spitzer wants to reinstate the gross receipts tax, also known as a "sick tax," that would result in a .35 percent levy on every dollar earned at the Medical Center. Other funding cuts target workforce recruitment and retention programs and reductions in Worker's Compensation and No-Fault payments.
     Under President Bush's budget proposal for FFY 2008, the estimated budget impact would total roughly $1.8 million on AMC operations over a five-year period.
     The consequences of these drastic cuts would lead to reduced access and undermine workforce investment, result in the elimination of services, which are all in direct opposition to the high standard of care AMC strives to provide for the Tri-Lakes Region and beyond.
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. 
    "Despite a new administration in Albany with a promise of a new way forward, it is business as usual with a budget proposal that has the potential to harm health care providers under the guise of health care reform," said Chandler Ralph, AMC President & CEO, "There is a genuine need for systemic reform in how we provide health care. We are more than willing to work with the governor and other elected leaders to implement the reforms and investments that a state-of-the-art health care system demands."
     On March 7th, 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, Assemblywoman Janet Duprey and Assemblywoman Teresa Sayward, and ask them to vote NO on Governor Spitzer's proposed health care taxes and cuts!  
     With everyone's help, we can send a strong message and have a positive impact on this budget.

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	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.