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State Representative Tim Faust
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0518
For more information contact: Michael Howard 651-296-8873
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AREA HOSPITAL FIGHTING FOR ADEQUATE STATE FUNDING
Potential state budget cuts at area hospital could amount to $2.5 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.
“If the governor’s budget passes, his cuts to hospitals will never heal," said State Rep. Tom Huntley (DFL – Duluth) who chairs the House Health Care and Human Services Finance Division. “Jobs and services lost to those cuts will never come back. Hospitals in Northfield 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, Kanabec Hospital in Mora, Pine Medical Center in Sandstone, and Lakeside Medical Center Inc. in Pine City would stand to lose over $8 million over the next two years, which amounts to about 20% of their entire gross revenue. Rep. Tim Faust voiced concern about the effect deep cuts to hospitals will have on jobs.
“We know that for every $1 million we cut from hospitals we lose about 20 jobs,” said Faust, who said about 300 people work at area hospitals. “With so many Minnesotans already struggling in this recession, deep cuts that will force massive layoffs at our hospitals doesn’t make much sense.”
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 area hospitals would shrink from $8 million to about $130 thousand.
“We can’t responsibly balance this budget without significant budget cuts, but it’s also not responsible to load up major cuts to one area that is so important to our community and economy,” said Faust. “We need to find a balanced level of cuts to the health and humans services budget that is less harmful to our hospitals, clinics and nursing homes.”
Rep. Faust encouraged his constituents to contact him with their opinion on cuts to hospitals as well as other legislative priorities. He can be reached at (651) 296-0518 and by e-mail at rep.tim.faust@house.mn
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