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State Representative Kim Norton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9249
For more information contact: Matt Swenson 651-297-8406
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ROCHESTER HOSPITALS WOULD LOSE $28.2 MILLION UNDER GOVERNOR’S BUDGET
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 Rochester 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, Rochester area hospitals would stand to lose $28.2 million in state funding over the next two years, including:
• $1.1 million in cuts for Mayo Psychiatry and Psychology (5.0 percent of gross revenue)
• $19.4 million in cuts for St. Mary’s Hospital (3.0 percent of gross revenue)
• $6.4 million in cuts for Rochester Methodist Hospital (1.6 percent of gross revenue)
• $1.3 million in cuts for Olmsted Medical Center (1.1% of gross revenue)
“These hospitals employ nearly 11,500 people,” said State Rep. Kim Norton (DFL - Rochester). “Our hospitals are already facing serious challenges brought on by the economic recession. Rochester’s economy depends on the quality health care provided by the nation-leading hospitals that call our community home. The loss of jobs that would result from these cuts and the impact on services, are simply unacceptable. We have to do better.”
Under the budget plan offered by House DFLers, while still facing cuts, 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 Rochester area hospitals would drop more than $25.5 million to just $3.4 million over the next two years. Specifically, Rochester hospitals would see the following cuts under the House proposal:
• $163 thousand in cuts for Mayo Psychiatry and Psychology ( 0.7 percent of gross revenue)
• $2.1 million in cuts for St. Mary’s Hospital (0.3 percent of gross revenue)
• $843 thousand in cuts for Rochester Methodist Hospital (0.2 percent of gross revenue)
• $265 thousand in cuts for Olmsted Medical Center (0.2 percent of 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. But we can’t sacrifice the critical services our hospitals provide Minnesota communities just to save a buck. We need to set priorities and make responsible decisions for our hospitals and our future.”
News Items
- Rep. Norton Selected as Vice Chair of House Health and Human Services Finance Committee - (Posted: 2012-12-14 00:00:00)
- It’s Time for Legislature to Get Back to Basics, Balance the Budget Honestly - (Posted: 2012-12-11 00:00:00)
- Second Saturday Coffee Meeting Date Changed to December 9 - (Posted: 2012-12-03 00:00:00)
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