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State Representative Andrew Falk
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4228
For more information contact: Matt Swenson 651-297-8406
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REP. FALK: FEDERAL HEALTH REFORM BENEFITS LOCAL HOSPITALS
ST. PAUL, MN – State Rep. Andrew Falk (DFL – Murdock) applauded Governor Mark Dayton today for signing an executive order that will bring approximately $338,240 in federal funding to seven area hospitals. Rep. Falk said the order will stabilize cash-strapped rural hospitals, protect jobs, and drive down health care costs for middle-class Minnesotans.
“When Tim Pawlenty line-item vetoed General Assistance Medical Care in 2009, rural hospitals paid the price," Falk said. “A patchwork solution temporarily only stemmed the bleeding. This executive order will help to stabilize our hospitals, protect needed jobs, and improve the quality of health care in rural Minnesota.”
Because of the executive order, seven area hospitals stand to gain roughly $338,240 in new federal funding, including (figures are approximations based on most recent estimates):
Appleton Municipal Hospital $37,583
Swift County Benson Hospital $37,583
Johnson Memorial in Dawson $75,162
Holy Trinity in Graceville $37,583
Hendricks Community Hospital $37,583
Ortonville Health Services $75,162
Tyler Healthcare Center $37,583
In total, the executive order signed today will bring more than $1 billion back to Minnesota, generate $2.7 billion in business activity, protect or create 20,000 jobs, and produce $984 million in salaries and wages. Rep. Falk says it will also relieve stress on counties and middle-class Minnesotans who have been stuck with the tab for uncompensated care.
“According to a recent Families USA study, the average Minnesota family pays a hidden tax of roughly $1,017 to pay for uncompensated care in our state,” Falk said. “We pay that tax in higher premiums and higher health care costs – not to mention higher property taxes.”
But the executive order signed by Governor Dayton today will help relieve that burden on families while providing affordable care for the poorest and sickest Minnesotans.
"While many people continue to debate the merits of the federal health care reform legislation, there are benefits that directly impact, in a positive way, our rural health care facilities – and that is a good thing," said Rep. Falk.
The order will also help relieve pressure on the state budget by minimizing the shortfall in the Health Care Access Fund. The predicted $54 million shortfall can now be applied to the state's bottom line. Falk says that is welcome news heading into the 2011 Legislative Session.
“The state is facing a $6.2 billion deficit right now,” said Rep. Falk. “Anything that will help reduce that deficit is good news. It means fewer cuts to other critical services Minnesotans depend on. We have a lot of hard work ahead of us. Today's action by Governor Dayton was a step in the right direction."
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