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ST. PAUL, MN – Dozens of hospital administrators from across Minnesota descended on the State Capitol today to fight for adequate state funding in the face of the state’s worst ever budget crisis. Potential budget cuts under Governor Tim Pawlenty’s health care proposals would eliminate $764 million in state funding for hospitals over the next two years. Those cuts would be devastating to hospitals and communities throughout the state – eliminating critical care options for patients, shedding thousands of jobs, and potentially forcing some Minnesota hospitals to close.
“If the governor’s budget passes, his cuts to hospitals will never heal," said State Rep. Tom Huntley who chairs the House Health Care and Human Services Finance Division. “Jobs and services lost to those cuts will never come back. Hospitals in Detroit Lakes and across the state would be severely damaged, unable to recover.”
The governor’s budget plan hits close to home. Should the plan become law, St. Mary’s Regional Health Center would lose over $6.5 million in state funding over the next two years, amounting to close to 25% percent of its gross revenue. Tom Thompson, CEO from St. Mary’s, was in St. Paul advocating for a more reasonable House plan authored by Rep. Huntley that would help keep hospitals whole through the budget crisis.
State Rep. Paul Marquart attended the briefing, and said he hoped the Governor heard the message today from the hospital representatives.
“Out here in Greater Minnesota, we rely on our hospitals not only for medical care, but also for important local jobs,” said Marquart. “Over 400 people work at St. Mary’s; cuts of this magnitude could cause some of those people to lose their jobs, and badly needed programs and services could be eliminated. We cannot afford to make short-term budget decisions that will cause such long-term damage.”
Under the budget plan offered by House DFLers, Minnesota hospitals would face significantly lower cuts, totaling just $76 million – $688 million less than what Governor Pawlenty has proposed. Losses to St. Mary’s would shrink to $126 thousand or 0.4 percent of the hospital’s gross revenue.
“The consequences of the governor’s budget are too severe to ignore,” said Rep. Huntley. “We’re facing a record $6.4 billion budget shortfall and everyone needs to share in the solution. We need to set priorities and make responsible decisions for our hospitals and our future.”
“This recession will end,” said Marquart. “And when it does, we want to make sure our local hospitals are still here caring for the members of our community and providing important jobs.”