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State Representative Tom Anzelc

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For more information contact: Michael Howard 651-296-8873

Posted: 2009-04-22 00:00:00
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Press/News Releases

Area Hospitals Fighting for Adequate State Funding at State Capitol



Potential state budget cuts at area hospital could amount to $5 million

ST. PAUL, MN – Dozens of hospital administrators from across the state 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 proposal would eliminate $764 million in state funding for hospitals over the next two years. Those cuts would be devastating to hospitals and Minnesota communities – eliminating critical care options for patients, shedding thousands of jobs, and potentially forcing some Minnesota hospitals to close. Falls Memorial Hospital Administrator Bonnie Erickson was in St. Paul advocating for a more reasonable House plan authored by State Rep. Tom Huntley and spent time discussing the two proposals with State Rep. Tom Anzelc, the only House member on the Health and Human Services Finance Committee from Northern Minnesota.
“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 International Falls, Baudette and Bigfork, 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, area hospitals would stand to lose about $5 million in state funding over the next two years, including:
• $2.7 million in cuts for Falls Memorial Hospital, International Falls (18 percent of gross revenue)
• $1.3 million in cuts for LakeWood Health Center, Baudette (15.3 percent of gross revenue)
• $611 thousand in cuts for Bigfork Valley Hospital (5.2 percent of gross revenue)

Rep. Anzelc said along with reducing services and care, these hospital cuts would force significant job losses. Falls Memorial Hospital employs 125 people, LakeWood Health Center employs 63 people and BigFork Valley Hospital employs 108 people. It’s estimated every $1 million in cuts will force 20 jobs to be lost at Minnesota hospitals.
“Minnesotans are looking for a balanced approach to solving this budget deficit that positions us for economic recovery,” said Anzelc. “In a time when Minnesotans are struggling, the Governor’s budget would only drive us deeper into a recession by cutting thousands of good jobs at Minnesota hospitals and nursing homes. We can and must do better. Our House plan is much better for Northern Minnesota.”
Under the budget plan offered by House DFLers, Minnesota hospitals would face significantly lower cuts totaling $76 million – $688 million less than what Governor Pawlenty has proposed. Should the House plan pass, losses to area hospitals would drop from about $5 million to just over $100 thousand over the next two years. Specifically, area hospitals would see the following cuts under the House proposal:
• $67 thousand in cuts for Falls Memorial Hospital, International Falls (0.4 percent of gross revenue)
• $40 thousand in cuts for LakeWood Health Center, Baudette (0.5 percent of gross revenue)
• $16 thousand in cuts for Bigfork Valley Hospital (0.1 percent of gross revenue)

The 2009 Legislative Session is scheduled to adjourn May 18. Until then, Rep. Anzelc encourages all his constituents to call Governor Pawlenty and tell him to support the House proposal as a more responsible way to balance the budget. Governor Pawlenty can be reached by phone at (800) 657-3717 or by email at tim.pawlenty@state.mn.us.

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