The East End’s three hospitals would suffer even more from Governor David A. Paterson’s proposed state budget cuts than originally expected, State Assemblyman Fred W. Thiele Jr. of Sag Harbor announced last month.
Southampton Hospital, Peconic Bay Medical Center in Riverhead and Eastern Long Island Hospital in Greenport, which compose the East End Health Alliance, would lose a combined $1.47 million in funding, according to the latest estimates. Original expectations placed the number at $1.35 million, Mr. Thiele said.
The difference reflects the use of updated data provided by the State Department of Health, he added. Net cuts to hospitals statewide are expected to remain stable, according to this latest formula.
“Rather than impact local health services, the governor should be focusing his attention on health insurance companies and HMOs,” Mr. Thiele was quoted as saying in a press release issued by his office last month. “At the same time that hospitals are in the red and receiving insurance reimbursement rates that are lower than even Medicaid, insurance companies continue to reap obscene profit levels while at the same time holding our community hospitals hostage. Health care should be about patients, not profits and stockholders.”
Southampton Hospital would see a cut of $495,000, according to the latest budget figures from Mr. Thiele. Peconic Bay Medical Center would see a drop of $632,000, and Eastern Long Island Hospital would see $341,000 in cuts.
Paul J. Connor, CEO of Eastern Long Island Hospital, noted that the $1.47 million figure is a “big hit,” particularly for hospitals that are already experiencing financial difficulties, but it has a caveat: it does not include nursing home and home care, just inpatient care. Nevertheless, he foresees that hospitals may be forced to reduce their operating budgets, perhaps by cutting jobs and reducing services.
“We still have a mandate to provide high-quality health care. That is our mission,” he said , adding that such deep cuts may hinder the hospitals’ ability to continue that mission. Mr. Connor noted that the state budget may affect Eastern Long Island in at least three main areas: a reduction in bad debt charity, or uncompensated, pools that help hospitals contend with uninsured patients who incur debt from hospital care; changes in the Medicaid reimbursements; and a doubling of the gross receipts tax, which is an assessment on all the income the hospital earns.
Bob Chaloner, president and CEO of Southampton Hospital—speaking through Marsha Kenny, public affairs director—lamented the cuts to an already strained system in a difficult economy. And Catherine Kelly, the director of public relations at Peconic Bay Medical Center, said the cuts had the potential to be “devastating.”
Mr. Thiele added that the state expects to receive nearly $1.5 billion in new Medicaid funds under President Barack Obama’s proposed budget and called for Mr. Paterson to consider returning a portion of these federal funds to local hospitals, instead of “bankrupting” them.
He added that the State Assembly may vote on a version of the budget this week and consider restoring the cuts.
Colleen Reynolds on Mar 31, 2010