November 30, 2009 News Headlines

Governor Paterson last week offered a new 16-month proposal to address the state’s $3.2 billion deficit, but HANYS believes the Governor’s new plan is a step in the wrong direction.

The Governor’s original plan proposed a total of $89 million in state savings to be taken from hospitals; however, the latest proposal doubles the Governor’s initial target to $185 million, taken through a 0.4% increase in the gross receipts tax (GRT), zeroing out the 2010 trend factor, and delaying Health Care Efficiency and Affordability Law for New Yorkers (HEAL NY) funding.

The main heath care elements of the Governor’s new deficit reduction plan include:

• Increase the GRT from .35% to .75%, valued at approximately $142 million in revenue from providers. Although the Governor claims this tax would be reimbursable, only a small portion of it ($17 million) would be, and that would be contingent upon federal approval.
• Elimination of the 2010 trend factor (inflation adjustment) for hospitals, nursing homes, and home health care providers. The trend factor is currently estimated to be 1.7%.
• Substantially reduce the 2009 nursing home rebasing plan. The initial $210 million value of the rebasing plan would be reduced to $52 million for the period of December 1, 2009 through March 31, 2010. This proposal represents a cut of $158 million for the current fiscal year. The value of rebasing for April 1, 2010 through March 31, 2011 would be restored to $210 million, barring any potential subsequent budget actions this or next fiscal year.
• Delay the nursing home regional pricing plan until March 1, 2011.
• Delay HEAL NY funding until April 1, 2010. It is not yet clear what HEAL NY funding awards would be impacted by this plan.

The Governor issued a third deficit reduction proposal earlier today, which included all of the same health care cuts listed above, with the exception of language to provide for the delay of HEAL NY funding.

In a letter sent earlier today, HANYS’ President Daniel Sisto reminded legislators that health care providers in New York State have been disproportionately cut and taxed four times in just the last 18 months. These budget cuts have resulted in the elimination of patient care services and the loss of jobs--damaging both the health of the state’s citizens and its economy. The letter also highlighted that the proposed “reimbursable” tax increase on hospitals would only provide hospitals with minor relief, if any.

With more reductions likely, health care providers will need to make cutbacks that are even more drastic. HANYS encourages members to continue their advocacy to ensure that all state legislators are fully aware of providers’ opposition to this plan. Contact: Nicholas Henley

Commissioner of Health Richard Daines, M.D., has announced a partial suspension of a newly enacted mandate on hospital neonatal intensive care units (NICUs) to offer the influenza vaccine to new parents. The law, creating Section 2805-h of the Public Health Law, was signed by the Governor earlier this year and was scheduled to go into effect November 25. The Commissioner has suspended the mandate as it applies to the 2009 trivalent seasonal influenza vaccine for the 2009-2010 flu season. Further, the Commissioner has delayed the effective date of the requirement to offer H1N1 influenza vaccine until January 15, 2010.

The suspension and temporary delay were attributed to inadequate supply of both vaccines.

The Commissioner’s announcement was provided in a November 25 letter and included a fact sheet providing hospital guidance on developing an immunization policy. Contact: Karen Roach

HANYS congratulates seven member facilities who are the recipients of the 2009 Public Relations Excellence Award. The winning facilities are:

• Adirondack Medical Center
• Brookhaven Memorial Hospital Medical Center
• Lenox Hill Hospital
• Roswell Park Cancer Institute
• St. Elizabeth Medical Center
• Thompson Health
• Westchester Medical Center

This year’s award honored representatives in seven regions across New York State to acknowledge the breadth of creativity and excellence in advocacy efforts of New York’s health care providers. The winning facilities were selected for the innovative and effective methods they employed during the 2009-2010 state budget battle. Contact: William Van Slyke