ALBANY, N.Y., March 19 – As New York closes in on its April l budget deadline, the Continuing Care Leadership Coalition (CCLC) has joined other health care associations in criticizing health care cuts proposed by Governor Eliot Spitzer. CCLC called for action to ensure long-term care quality and access in New York State.

CCLC said it is seeking rejection of several of Spitzers proposed budget issues, including Spitzers plans to eliminate the 2007 nursing home trend factor, and to phase out the Nursing Home Workforce Recruitment and Retention Program.

The majority of nursing homes are already losing money, the coalition reported, noting a 51 percent loss in 2004. Other indicators of financial distress include, according to CCLC:

New York nursing homes have sustained over $2 billion in Medicaid cuts since 1995;

Nursing homes lose on average $26 per day on care delivered to Medicaid patients;

63 nursing home closures since 1983; 44 since 1994;

The average state nursing home operated at an annual operating loss of 15 percent.

HC Associations Speak Out at Legislative Meeting

At a recent Senate Finance and Assembly Ways and Means Joint Legislative Hearing on the 2007-2008 Executive Budget on Health, Medicaid, and Aging, representatives from other associations voiced their displeasure with nearly $1 billion in health care cuts proposed in Spitzers budget.

The Healthcare Association of New York State (HANYS) president Daniel Sisto said, Across-the-board health care cuts do not constitute reform. While the governors goal of a more efficient health care system is laudable, we are concerned that his approach takes us further from, not closer to, the better system he envisions.

He added, The governors cuts are compounded by billions more in funding cuts for New York proposed by President [George W.] Bush. The confluence of these two budget proposals will overwhelm our care providers, force administrators to make agonizing decisions and ultimately imperil patient care. These cuts must be stopped.

Every year costs go up for health care providers, from pharmaceuticals, to energy, to technology, to health insurance for the tens of thousands of health care employees that drive much of the upstate economy, and each year, we face the threats of government funding cuts.

Phyllis Wang testified on behalf of the home care industry and New York State Association of Health Care Providers (HCP). While Wang supported Spitzers proposal to maintain the home care trend factor, and his proposals that fund home care workforce recruitment and retention efforts, her testimony included opposition to proposed cuts to home care providers.

One cut of concern is the elimination of Rural Home Care Funding, said Wang. With the high cost of fuel and increased use of technology to deliver services, this $16 million cut could limit access to home care for many patients. In addition, approximately 14,000 home care patients could lose their services if Level I of the Personal Care program is eliminated. HCPs primary concern is to make sure these patients receive necessary services if this level of care is cut.

According to Kenneth E. Raske, president of the Greater New York Hospital Association (GNYHA), who also testified before the joint committee, While there are very positive elements of the executive budget " including the avoidance of beneficiary cuts, the expansion of Child Health Plus to uninsured children in families up to 400 percent of the federal poverty level, and much-welcomed simplification of the Medicaid re-certification process (something GNYHA has supported for many years) " this is a uniquely perilous time for New Yorks health care system, and with great dismay, $1 billion in payment cuts have again been proposed for the hospital and nursing home sectors. In addition, the budget proposal contains two hospital proposals that would result in potentially negative, but as yet unidentified, redistributions of inpatient case payments and indigent care pool funding.

The union 1199 S.E.I.U. has launched a campaign to defeat the $1.3 billion in medical spending cuts proposed in Spitzers budget.

Spitzers first executive budget takes direct aim at New Yorks health care industry while insisting he is putting patients first, said Mindy Berman, communications director for 1199.

According to Stefan Friedman, president of strategic communications for 1199, Spitzers health care cut proposal should be rejected because Spitzer says he wants to shift funding from institutions to patients, but his budget puts only $10.6 million toward covering 400,000 uninsured children, while slashing $1.3 billion in health care programs; Governor Spitzer says he wants to go after entrenched interests, but his budget slashes funding for New Yorks community providers while leaving billions of dollars in excess profits for the ultimate entrenched interests " HMOs " untouched.

Sisto summed up much of the dismay by stating, It is understood by virtually every health care provider in the state that our health care system needs reform that strengthens our ability to efficiently provide the best patient care possible. Unfortunately, the federal and state budget proposals fall short of that goal by relying on many of the very same across-the-board cuts that time and again have been rejected by lawmakers because they will hurt patient care.