Estimates show hurting hospitals

By Denise Richardson
Staff Writer

January 06, 2009 04:00 am

Most hospitals across the state are working with funding losses under the governor's proposed budget, according to recently released estimates from the Healthcare Association of New York State.

But the HANYS report showed A.O. Fox Memorial Hospital in Oneonta would gain $558,000, among a few institutions projected to avoid a negative impact from cuts under the executive plan.

However, Mark Wright, Fox vice president of finance, said the estimates don't reflect the closure in 2007 of the psychiatric unit, which would reduce the gain to $209,000. And projected losses at the Fox nursing home, estimated at $969,000, would result a total loss of about $760,000 for the institution under the governor's proposal, Wright said.

Estimates tend to change, Wright said last week, and the hospital will wait until firmer figures are available before taking action.

Fox President John Remillard said last month the hospital continues efforts to cut costs, resist layoffs and seek ways to generate revenue.

HANYS estimates reported on Medicaid fee-for-service and managed care revenues. If the Legislature enacts the governor's plan, the estimated $2.5 billion reduction in statewide health-care funding would result in service and job cuts, the report said.

HANYS, which released impact figures Dec. 19, projected losses under the governor's proposal of $1,166,000 for Mary Imogene Bassett Hospital in Cooperstown.

Bassett spokeswoman Karen Huxtable said HANYS projections are a good barometer. However, the hospital's finance department also performs calculations to develop a budget in light of financial constraints, she said last week.

Bassett departments were asked to hold down costs and look for savings, chief financial officer Nicholas Nicoletta said last month. Consequences of state cuts might include delaying or adjusting costs for projects and not approving requests for additional school-based health care, he said.

HANYS projection of losses for other area hospitals were $45,000 for Delaware Valley Hospital in Walton; $126,000 for Margaretville Memorial Hospital; $134,000 for O'Connor Hospital in Delhi; and $696,000 for Cobleskill Regional Hospital.

Estimates for Tri-Town Regional Hospital, which opened last year, weren't available.

Daniel Sisto, HANYS president, said in the media release that most hospitals already have planned freezes or cuts in services and staff because of losses from low reimbursement levels, as well as the national recession.

According to a November survey of voters by the Siena Research Institute on behalf of HANYS, almost two-thirds of New Yorkers would rather see their taxes raised than cutting health care or education to close the state budget deficit.

By a margin of 79 percent to 17 percent, New Yorkers oppose state budget policies that cut funding for Medicaid, and by 84 percent to 13 percent, they oppose budget actions that cut spending for health care, said a HANYS news release on Jan. 2.

"This information should give the Legislature good reason to fight hard to mitigate the tremendous health-care cuts Governor (David) Paterson has proposed," Sisto said.

For this poll, calls were made to 794 registered voters between Nov. 6 and 12. The margin of error is 3.5 percent.

The poll was conducted before Paterson released his budget proposal.

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