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State Representative John Persell
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5516
For more information contact: Charlene Briner 651-296-5809
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NORTHERN MINNESOTA HOSPITALS WOULD LOSE $ BILLION UNDER GOVERNOR’S BUDGET PLAN - House DFL offers more responsible budget for Minnesota hospitals
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, the cuts he makes 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 Bemidji, Park Rapids, Bagley 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, Northern Minnesota hospitals would stand to lose $21.7 million in state funding over the next two years, including:
• $2.1 million in cuts for Clearwater Health Services in Bagley (26.3 percent of gross revenue)
• $14.3 million in cuts for North Country Health Services in Bemidji (17.7 percent of gross revenue)
• $ 5.3 million in cuts for St. Joseph’s Area Health Services, Inc. in Park Rapids (17.0 percent of gross revenue)
In addition to diminished access and quality of health care if the Governor’s cuts were enacted, the risk of related job losses in the health care sector is significant. Clearwater Health Services, North Country Health and St. Josephs are all major employers in Northern Minnesota, with more than 1600 employees between them.
“With unemployment levels this high, we can’t afford to let these cuts go through,” said State Rep. Brita Sailer (DFL-Park Rapids). “If the governor’s plan passes, local hospitals would be forced to lay off dozens of workers and cut critical services that residents depend on. That could devastate our community and cause irreparable harm to our quality of life. We have to do better.”
Under the budget plan offered by House DFLers, Minnesota hospitals would face significantly lower cuts totaling $76 million – $688 million less than the Governor proposes. Should the House plan pass, losses to area hospitals would drop to roughly $1.2 million over the next two years, with Clearwater sustaining $59,607 in cuts, North Country sustaining 980,000 in cuts and St. Joseph’s sustaining $209,657 in cuts.
“The consequences of the governor’s budget are too severe to ignore,” said Rep. John Persell (DFL-Bemidji). “We’re facing a record $6.4 billion budget shortfall which means we all need to share in the solution. But sacrificing critical services and closing hospitals just to save a buck doesn’t make any sense at all - because once they’re gone they won’t come back. We need to set priorities and make responsible decisions that give our hospitals a fighting chance to survive until the economy turns around.”
The 2009 Legislative Session is scheduled to adjourn May 18. Until then, Reps. Persell and Sailer encourage all Northern Minnesota 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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News Items
- Rep. Persell: We Must Come Together to Help Citizens, Businesses Affected by Disaster - (Posted: 2012-08-16 00:00:00)
- Rep. Persell: Today’s Hearing an Important First Step - (Posted: 2012-08-07 00:00:00)
- Rep. Persell: Omnibus Tax Bill Exemplifies Irresponsible Budgeting - (Posted: 2012-05-01 00:00:00)
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