November ML-126

Twenty-Nine
2010

TO: Chief Executive Officers (New York State)

FROM: Kenneth E. Raske, President

RE: NYS Legislature to Consider 6.7% Medicaid Cut This Afternoon

As reported to you last week, we understand that Governor Paterson is calling the Legislature
back to Albany today to engage in yet another round of Medicaid cuts for hospitals, nursing
homes, and home care. We understand that the cut he is seeking is a 6.7% cut in provider
Medicaid payments for the period December 15, 2010, through March 31, 2011. This is in
addition to the 1.1% FMAP Contingency cut implemented just last month. This cut,
designed to save the State $70 million–$90 million, would cost providers much more, due to the
loss of Federal funding associated with Medicaid cuts. We need each and every GNYHA
member to contact their legislators this morning to make the following points:

 We know the State is facing a gaping budget deficit in the coming fiscal year, and we
want to be part of the solution.
 GNYHA has released a detailed Medicaid reform plan designed to save the State money
and enhance quality by better managing the care of high-cost Medicaid populations;
reducing provider costs and making the health care system more efficient through
common-sense reforms; working with the State to gain Federal waivers to allow the
State and New York’s provider community to make the investments necessary to reform
the health care system; and supporting essential community providers.
 We are working cooperatively with the incoming Administration, sharing our plan and
ideas with the Governor-elect, the Division of the Budget, the Department of Health, and
the State Legislature, and hope that real reforms can be included in next year’s budget
that can save the State billions of dollars in the coming years.
 However, we are strongly opposed to more cuts at this time. We have suffered nine
rounds of cuts since April 2007, most recently, the FMAP Contingency cuts that began
just last month. Cuts are not reform and will further damage an already fragile health
care system.
 As you know, hospitals around the State have not only shuttered services and laid-off
staff, many have closed altogether, with the closures of St. Vincent’s-Manhattan and
North General Hospital earlier this year being the most recent examples.
 There is a better way to save money and enhance quality. Let’s work together over the
next few months to truly reform the system to provide better quality at lower cost.
  In the meantime, we urge you not to cut the hospitals, nursing homes, and home care
agencies upon which your constituents rely.
 We look forward to your support for waiting until the new year and then passing a 2011–
12 budget that contains real reforms that will strengthen our health care system, not
permanently damage our health care safety net.

If you have any questions, please feel free to contact me, David Rich, Lloyd Bishop, or Bridgette
Roberts at GNYHA. Thank you, as always, for your consideration.

cc: Government Affairs Representatives

Chief Financial Officers