October Ml-111Twenty-Nine2 0 0 9TO: Chief Executive Officers (New York State)FROM: Kenneth E. Raske, PresidentRE: Key Senators Oppose Health Care Cuts; More Member Advocacy NeededThree key New York State Senators—Democratic Conference Leader John Sampson (D-Brooklyn), Senate Health Committee Chairman Tom Duane (D-Manhattan), and Senate FinanceCommittee Chairman Carl Kruger (D-Brooklyn)—have now publicly opposed enactingGovernor David Paterson’s proposed mid-year health care cuts, which include 10% Medicaidreimbursement rate cuts beginning on November 15. Attached is a press release GNYHA and1199 SEIU released last night in response to Senator Kruger’s statement yesterday, in which hesaid, “The Governor’s Medicaid and health care cuts place disproportionate pain on hospitals andnursing homes given they have weathered a number of cuts already. We have to do better andthose who do not recognize that responsibility lack the imagination or inclination to come upwith new answers to old problems." As we have reported to you in the past, Senator Sampsonhas stated in public leaders meetings that he and his conference oppose the health care cuts, andSenator Duane as early as August sent a letter to the Governor and the legislative leaders sayinghe would oppose new health care reductions. We are extremely grateful for the strong support of these three influential senators.
Despite this, we are still in deep trouble. Many legislators have not made the commitments thesesenators have. Many of you have reported back to us that your legislators have spoken about thecuts as if they were inevitable. Some legislators have said that they believe the State will run outof cash in December—potentially threatening the ability of the State to disburse funds—andhave asked you if you would prefer the cuts to no Medicaid check at all.I believe this is a false choice. First, we have no real way of knowing if the State’s cash flowposition is as dire as advertised. Second, if it is, it is incumbent upon the State—before evenconsidering cutting or taxing you for the
seventh time since April 2007
—to closely analyze andscrub every single account—both on-budget and off—to identify excess funding to either“sweep” or borrow against. I have told the Governor and the legislative leaders that GNYHA isready to help with this analysis, even going so far as to retain outside budget experts. It isunconscionable to cut or tax our financially fragile health care providers yet again, particularlywhen reforms that will reduce Medicaid inpatient payments for the vast majority of hospitals willbegin on December 1.
It is extremely important that you continue to meet with your legislators, including yourAssembly members.
Ask them to stand with Senators Sampson, Duane, and Kruger againstthe health care cuts. Ask them to immediately contact their legislative leaders to expressopposition.
If they say no, ask them “Why not? Particularly when these Senators have done so?”I have attached for your use the slides I used in my testimony on Monday before Senator Krugerand the rest of the Senate Finance Committee. The slides outline the following points:
•
The Governor’s Medicaid fee-for-service cuts to health care providers are not $287million, but actually $746 million with the loss of Federal funds. Due to the Federalstimulus bill, New York now receives $1.60 for every Medicaid dollar it spends—andloses $1.60 for every Medicaid dollar it cuts. This is by far the largest cut asked of anysector.
•
Health care providers have been cut or taxed six times since April 2007. The recurringannual loss is $2.2 billion. We cannot possibly sustain further cuts.
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Myriad Medicaid reimbursement rate reforms are scheduled to take effect in the next sixmonths, including Medicaid inpatient reform on December 1. These reforms alone willmean major payment reductions for many providers, even without new cuts. New cuts ontop of these reforms will mean more layoffs, service reductions, and even closures.
•
What is needed to help hospitals cope with the loss of revenue from the past cuts, letalone new ones, is medical malpractice reform. Medical malpractice reform, particularlywhen it comes to obstetrics, is a true Medicaid issue, given that Medicaid covers 50% of all deliveries in the State, 60% in New York City, and over 70% in the Bronx andBrooklyn.
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We need each legislator to oppose the cuts, like Senators Sampson, Duane, and Kruger;we need identification of funding both in the budget and off budget that can be used tostave off the State’s potential cash flow crisis; and we need to postpone the nursing homeregional pricing system, scheduled to take effect on April 1, 2010, which will devastatenot-for-profit and public homes.I have also attached an analysis of the impact of the six rounds of cuts, taxes, and reforms oneach hospital in the State.If you have any questions, please call David Rich, Lloyd Bishop, or Bridgette Roberts atGNYHA.Attachmentscc: Government Affairs RepresentativesChief Financial Officers
GNYHA/1199 SEIU Healthcare Education ProjectStatement on Senator Carl Kruger’s Call to Protect Health Care
Kenneth E. Raske, President, Greater New York Hospital Association
George Gresham, President, 1199 SEIU United Healthcare Workers East
October 28, 2009Today, Senate Finance Committee Chairman Carl Kruger said in a statement:“…
the Governor’s Medicaid and healthcare cuts place disproportionate pain onhospitals and nursing homes given they have weathered a number of cuts already. Wehave to do better and those who do not recognize that responsibility lack the imaginationor inclination to come up with new answers to old problems."
GNYHA and 1199 SEIU applaud Senator Kruger for strongly opposing highlyinequitable health care cuts that will lead to layoffs, elimination of services anddepartments, and closures of entire facilities.Like Senate Democratic Conference Leader John Sampson and Senate Health CommitteeChairman Thomas Duane, who have already expressed deep concern about additionalMedicaid cuts after six rounds of cuts and taxes since April 2007, Senator Krugerrecognizes that Albany has trained its budget scalpel on health care providers once toooften.
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