Statement by IHA President Gary J. Fitzgerald on Governor Paterson's Proposed Health Care Cuts and Taxes

CLIFTON PARK, NY (12/16/2008)(readMedia)--

"Enacting Governor Paterson's proposed cuts in health care and increases in taxes on health care will be devastating to Upstate New York and further the economic depression. Health care is the only industry in Upstate which is actually creating new jobs every day. Unlike other industries that are seeking government bailouts, we are just fighting for adequate reimbursement rates which allow us to provide quality care to Upstate citizens. 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.

"While we recognize the State's record deficit will require sacrifice by all, 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. As the economy causes the number of uninsured and underinsured to increase, hospitals are providing more uncompensated care. If the State resorts to the same old cuts and taxes on hospitals and nursing homes while the cost of providing care to the community increases, health care facilities' fiscal challenges exacerbate. The costs must be absorbed somewhere, and in health care, when the political system fails to pay for its commitments and promises, the private sector winds up covering the financial shortfall.

"Beyond jobs, Upstate communities are dependent upon hospitals for a total financial impact of more than $11 billion. The reimbursement rate reduction and gross receipts tax on hospitals will force hospitals to layoff staff and reduce services. These actions limit health care access for citizens and are detrimental to an already struggling local economy.

"IHA applauds Governor Paterson's proposal to integrate some state agencies and services. Upstate hospitals have also integrated services in their communities to create efficiencies in a difficult fiscal environment. However, cuts and taxes do not provide for efficiencies and will result in health care service eliminations.

"The Iroquois Healthcare Alliance urges Upstate legislators to analyze Governor Paterson's proposals carefully and not be pressured to enact drastic cuts that will further erode the Upstate economy and community."

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