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Budget Cuts
will Cripple Pennsylvania Hospitals
The controversial
Senate Republican budget proposal now
being debated by the state House of
Representatives is not only out of
balance by $1.5 billion, but it also
threatens our most vulnerable citizens.
The plan slashes more than $280 million
in medical assistance payments to
hospitals, creating a devastating economic situation
through loss of jobs as well access to
quality medical care.
These cuts would
devastate hospitals and health care
delivery, leave patients out in the cold
and cripple Pennsylvania’s economy; not
to mention the federal
stimulus funds that would be jeopardized
if these cuts were allowed.
Medical Assistance
payments provide health care services to
approximately 1.9 million
Pennsylvanians. Cut that funding and
Pennsylvania’s most vulnerable –
children, the elderly, those living with
disabilities and pregnant women - will
suffer the most.
If Senate Bill 850 is
passed, the impact of these cuts in
Philadelphia alone would be alarming:
-
Temple,
University of Pennsylvania and
Albert Einstein would lose an
estimated $85 million
-
Philadelphia
Mercy Hospital would lose $1.5
million state and $1.8 million
federal
-
OB/Neonatal
services will be eliminated - $5
million state and $6 million federal
-
Payments to
trauma centers would be eliminated -
$12.3 million state and $15 million
federal
-
Burn center
funding would be eliminated – a loss
of $5.1 million state
These are CRITICAL
services that would all suffer
tremendously with this spending plan.
Philadelphia has eight hospitals that
received an OB/neonatal payment in fiscal
year 2007-08, as well as eight trauma
centers. Two hospitals in Philadelphia
received Burn Center payments in
2007-08. All these dollars would
vanish in 2009-10 if this budget is
enacted.

Not only will
patients suffer if these cuts are
enacted, this spending plan will result
in the loss of 13,000 hospital jobs.
This loss of jobs will most assuredly
lead to chaotic and overcrowding
emergency rooms due to shortage of
staff. This will force patients to
travel longer distances to other,
already overburdened hospitals, delaying
treatment and possibly causing longer
hospital stays and increasing costs
exponentially.
Pennsylvania’s
medical system would deteriorate and
those desperately in need of treatment
and medication would be left out in the
cold.
Hospitals in periods
of economic upheaval need more help to
deal with high costs of servicing those
who have no insurance. This is not the
time to turn away from helping
hospitals.
Hospitals are, at
times, leaders in job creation for every
level of worker, from doctors to nurses
to janitors and food service workers. By
eliminating funding, we are doing a huge
disservice to economic development in
the region and forcing more
Pennsylvanians into the unemployment
line.
There is no doubt
that a budget needs to be passed right
now. But this state cannot afford a
spending plan that is balanced on the
backs of our most vulnerable citizens by
drastically cutting medical assistance
funds and hospital payments.
|
FY 2009-2010 Medical Assistance
Budget |
|
Comparison of Senate &
Governor Proposals |
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| |
|
2009-2010
Budget Reductions |
(funds in
millions) |
|
| |
2008-09
Appropriation |
GOVERNOR |
SENATE |
|
Impatient DSH |
$34.3 |
$4.6 |
$5.6 |
$4.6 |
$5.6 |
|
Medical Education |
$36.5 |
$3.9 |
$6.9 |
$29.8 |
$50.8 |
|
Community Access Funds |
$28.2 |
$3.6 |
$3.9 |
$28.2 |
$29.9 |
|
Outpatient DSH |
$27.9 |
$5.4 |
$9.6 |
$22.6 |
$38.5 |
|
Critical Access Hospitals |
$5.2 |
$5.2 |
$6.3 |
$5.2 |
$6.3 |
|
Burn Centers |
$5.5 |
$5.5 |
$6.7 |
$5.5 |
$6.7 |
|
Academic Medical Centers |
$21.6 |
$2.8 |
$3.4 |
$1.5 |
$1.8 |
|
OB/NICU |
$6.9 |
$2.0 |
$2.4 |
$6.9 |
$8.4 |
|
Trauma Centers |
$12.3 |
— |
— |
$12.3 |
$14.9 |
|
SUBTOTAL |
$33.0 |
$44.9 |
$116.6 |
$162.9 |
|
TOTAL REDUCTIONS |
$77.9 |
$279.5 |
|
*Reflects
enhanced FMAP
©The Hospital &
Healthsystem Association of
Pennsylvania |
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