Statement By IHA President Gary J. Fitzgerald On Governor Paterson's Proposed Healthcare Cuts and Taxes

CLIFTON PARK, NY (11/12/2008)(readMedia)-- "Enacting Governor Paterson's proposed cuts in health care and increases in taxes on health care will be the final act in driving Upstate New York into an economic depression. Health care is the only industry in Upstate which is actually creating new jobs every day. Health care is the largest employer in Upstate New York currently employing nearly 400,000 people. The proposed Medicaid cuts will result in health care service reductions and layoffs across Upstate New York.

"Cutting reimbursement rates to hospitals and nursing homes when health care providers are struggling to survive in this economy is a prescription for an Upstate health care crisis. At a time when we are seeing more and more uninsured in our hospitals due to the national recession, cutting rates exacerbates hospitals' fiscal challenges. Hospitals will be forced to layoff staff and cut services which would reduce health care access for citizens of Upstate.

"Before resorting to the same old cuts and taxes on hospitals and nursing homes, Governor Paterson and the State Legislature should focus on reductions in state and local government workforces and services. The Governor's proposal announced today does not include a reduction in the state workforce or call for the consolidation of government services.

"It is imperative that in this fiscal crisis, consolidation and regionalization of state and local governments be a number one priority. As a citizen of New York State ask yourself, ‘If there need to be layoffs and service eliminations, would I rather layoff nurses and eliminate health care services, or layoff a county, city or state worker and consolidate government services?'

"The Iroquois Healthcare Alliance will urge Upstate legislators to analyze Governor Paterson's proposals carefully and not be pressured to enact such drastic cuts in a one day special session.

"These crucial decisions should be analyzed by all of our elected officials in a full State budget discussion which should start now and continue into the January legislative session."

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The Iroquois Healthcare Alliance (IHA) represents 55 hospitals and health systems in 31 counties of Upstate New York.