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ST. PAUL, MN – State Rep. Sheldon Johnson (DFL – St. Paul) says the outcome of the gubernatorial recount is good news for St. Paul-area hospitals. Governor-elect Dayton’s victory will mean $52 million in new federal funding for local health care providers.
That’s because legislation passed last year gives the state’s next governor the option to bring home $1.2 billion in badly-needed federal funding for Minnesota hospitals – an option Governor-elect Dayton has made clear he will take advantage of.
“St. Paul hospitals have been hurting ever since Tim Pawlenty line-item vetoed General Assistance Medical Care," said Rep. Johnson. “The fate of badly-needed hospital funding was hinging on the outcome of this election.”
Medical Assistance dollars included in the federal Affordable Care Act passed by Congress last year will cover all GAMC patients in Minnesota, including some MinnesotaCare enrollees. The one catch: states have to voluntarily opt-in to the program to receive the funding.
“We fought last session to give Minnesota’s next governor this common sense option,” Johnson said. “It is important for the stability of our hospitals, the health of our state, and the protection of badly-needed jobs.”
After his inauguration, Governor Dayton has until January 15th to sign an executive order to bring the federal dollars home. When he does, St. Paul-area hospitals stand to gain $52 million in new federal funding, including:
Regions Hospital
$33.6 million
United Hospital
$9.4 million
St. Joseph’s Hospital
$7.8 million
Bethesda Rehabilitation Hospital
$1.2 million
Enrolling in the program will also help reduce the state’s budget deficit by minimizing the shortfall in the Health Care Access Fund by several hundred million dollars. According to the recent budget forecast, that means more than $50 million on the state’s bottom line.
“We are looking at a lot of tough choices in the upcoming legislative session,” said Rep. Johnson. “But working together, and with Governor Dayton’s leadership, I am confident we can get our state back on track – and get people back to work.”