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State Representative Ryan Winkler

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Posted: 2009-04-24 00:00:00
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Press/News Releases

PAWLENTY WOULD CUT $14.3 MILLION FROM METHODIST AND REGENCY HOSPITALS


ST. PAUL, MN - Dozens of hospital administrators from across the state descended on the State Capitol Wednesday 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 2 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.

The governor’s budget plan hits close to home. Should the plan become law, area hospitals would stand to lose $14.3 million in state funding over the next two years, including:

• $14.1 million in cuts for Methodist Hospital in St. Louis Park (3.6 percent of gross revenue)
• $209 thousand in cuts for Regency Hospital in Golden Valley (0.7 percent of gross revenue)

These two hospitals employ more than 4,500 people. Methodist Hospital is owned and operated by Park Nicollet Health Services which just announced this week it plans to lay off 233 employees and leave 69 open positions unfilled due to the current economic recession. This news came after several previous layoffs at Park Nicollet over the past months.

“During a time of severe financial crisis for our hospitals these crippling cuts are irresponsible and unacceptable," said State Rep. Steve Simon (DFL - St. Louis Park). “Minnesota is facing an unprecedented budget deficit, and everyone needs to share in the solution. But now, more than ever we need to make responsible decisions to preserve the quality of care in our hospitals through careful, targeted cuts. Minnesota can and must do better by our hospitals - for the sake of jobs and maintaining critical emergency and other hospital services in our communities.”

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 more than $13.4 million to just $900 thousand over the next two years. Specifically, area hospitals would see the following cuts under the House proposal:

• $856 thousand in cuts for Methodist Hospital in St. Louis Park (0.2 percent of gross revenue)
• $45 thousand in cuts for Regency Hospital in Golden Valley (0.2 percent of gross revenue)

“The House has presented a carefully targeted, responsible plan that includes modest cuts Minnesota hospitals can live with,” said State Rep. Ryan Winkler. “If passed our efforts would keep hospitals whole through these challenging times. Doing everything within our means to ensure fair and adequate funding for Minnesota hospitals is the right thing to do for the state’s ongoing economic recovery efforts and for the sake of our communities.”

The 2009 Legislative Session is scheduled to adjourn May 18. Until then, Reps. Simon and Winkler encourage all local residents 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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