GNYHA/1199 SEIU HEALTHCARE EDUCATION PROJECT STATEMENT ON HEALTH CARE CUTS/TAXES IN GOVERNOR PATERSON’S PROPOSED BUDGET

Kenneth E. Raske, President, Greater New York Hospital Association
George Gresham, President, 1199 SEIU United Healthcare Workers East

January 19, 2010

Governor David A. Paterson has released a budget proposal that includes $900 million in health care cuts and taxes to hospitals, nursing homes, and home care.

New York’s health care community understands the severity of the current fiscal crisis, and we stand ready to contribute our fair share. But a budget deficit is not a mandate to decimate health care, and the stark reality is that the cuts and taxes proposed today will trigger severe reductions in care and more layoffs, downsizing, and outright closures.

We believe there are better choices than unsustainable cuts—including sensible Medicaid reforms and sorely needed medical malpractice reforms—and we pledge our cooperation in fully exploring them and sharing them in the weeks to come.

The Healthcare Education Project strongly supports Governor Paterson’s call for an increase in the cigarette tax and a new tax on sugared beverages from both a revenue standpoint—a failure to pass them will make ever larger and more devastating health care cuts inevitable—and their potential to help reduce cancer, strokes, obesity, diabetes and other conditions. And as budget discussions get underway, we encourage Governor Paterson to pursue medical malpractice reforms that would significantly reduce hospitals’ onerous costs.

“We are more than prepared to sacrifice for the good of New York State, but this budget weakens health care beyond repair,” said GNYHA President Kenneth E. Raske. “Our singular goal is a fair budget that enables financially struggling health care providers to continue providing the high-quality care that New Yorkers need and deserve.”

"Healthcare institutions continue to fight to stay fiscally solvent under continuous, consecutive budget cuts,” said 1199 SEIU President George Gresham. “Some nursing homes across the state lost that battle and closed their doors for good last year while workers across sectors have sustained a sharp increase in layoffs. We support the Governor's proposal to increase the tax on tobacco and sugared beverage products as a revenue solution and we hope both the Governor and Legislature give serious consideration to the financial sacrifices the healthcare community has already weathered."

GNYHA and 1199 SEIU also strongly support of an extension of New York’s enhanced federal Medicaid matching rate (known as “FMAP”), which would mitigate the need for disproportionate health care cuts.

Health care providers in New York State have endured seven funding cuts since 2007, and most struggle just to break even. They have shouldered far more than their fair share of the burden of deficit reduction and simply have no room left to absorb the level of cuts proposed today. Consequently, we are obliged to tell New Yorkers and their elected officials what will happen to health care in their communities if hospitals, nursing homes, and home care once again become outsized targets of the budget scalpel.

GNYHA and 1199 SEIU urge the New York State Legislature to take all necessary steps to protect and defend health care for all New Yorkers.

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With 350,000 members in New York, New Jersey, Massachusetts, Maryland and Washington D.C., 1199 SEIU is the largest and fastest growing healthcare union in the country. Our mission is to achieve affordable, high quality healthcare for all.