NY Family Planning Providers go from Cash Watch to Cash Warning; Headed toward Perfect Storm in Early 2010

ALBANY, NY (01/06/2010)(readMedia)-- Family planning health care providers and New York State Comptroller Thomas DiNapoli have something in common: both have been on a Cash Watch as their funds dwindle to historic lows. Family planning providers, however, have been watching their cash dwindle for years and have now moved on to a Cash Warning at the end of 2009. "I can say with confidence, they are about to be hit by the Perfect Storm," said Family Planning Advocates of New York State (FPA) President and CEO M. Tracey Brooks.

In his State of the State address today, Gov. David Paterson spoke of New York's revenue challenges. While on Cash Watch and now on Cash Warning, family planning providers have taken all possible prudent business steps to maintain services. "Without full funding in the coming year, the arriving Perfect Storm will close family planning health centers," Brooks confirmed.

The Perfect Storm approaches

New York has a proud legacy of legislative policy that supports access to family planning and sexual health services for all-but elements of a Perfect Storm are hitting family planning hard:

• More than 15 years of static Medicaid rates

• Funding cuts in the past few years

• Delayed contract approvals

• Delayed reimbursements

• Reductions in private insurance reimbursements

• More uninsured patients unable to pay

• Lack of bad debt reimbursement

"Family planning centers provide vital reproductive, sexual health and primary health care services, and 6 out of 10 patients consider their family planning provider their primary care provider. This number will increase as families struggle with unemployment and lost benefits, but only if health centers continue to exist to meet this need," said Brooks.

While the Governor and Comptroller stand on Cash Watch, family planning providers' Cash Warning is quickly becoming the Perfect Storm. "As the Governor establishes his budget for 2010-11 and the Legislature responds, we urge them to fully fund family planning," said Brooks.