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State Representative Jerry Newton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5369
For more information contact: Matt Swenson 651-297-8406
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MERCY HOSPITAL WOULD LOSE $22.9 MILLION UNDER GOVERNOR’S BUDGET PLAN
ST. PAUL, MN - Hospital administrators from Mercy Hospital in Coon Rapids joined dozens of hospital administrators from across the state at 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 Coon Rapids 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, Mercy Hospital in Coon Rapids would stand to lose $22.9 million in state funding over the next two years. That amounts to 7.4 percent of the hospital’s gross revenue.
“Mercy Hospital is the second largest employer in Coon Rapids employing more than 2,300 people and serving nearly 150,000 patients every year,” said State Rep. Jerry Newton (DFL - Coon Rapids). “It is an irreplaceable asset for Coon Rapids and the surrounding suburbs in terms of jobs and critical medical services. If these cuts go through, Mercy will be forced to lay off employees and eliminate services. Our community simply can’t afford these devastating cuts. This is totally unacceptable.”
Mercy Hospital administrators were in St. Paul advocating for a more reasonable House plan authored by Rep. Huntley that would help keep hospitals whole through the budget crisis. 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 Mercy Hospital would drop more than $21.3 million to just $1.6 million over the next two years. That’s about 0.5 percent of the hospital’s gross revenue.
“In every area of the budget we are working to make the most responsible cuts possible. Those efforts include minimizing cuts to hospitals that play an essential role in preserving the health and wellbeing of individuals and families in our communities,” said State Rep. Denise Dittrich (DFL - Champlin). “Facing an unprecedented $6.4 billion budget shortfall, every area of the budget needs to be examined closely and cuts need to be made. But we can’t sacrifice quality of care and jobs at our hospitals just to balance the budget. We need to make these cuts carefully to ensure citizens in the northern suburbs have access to quality emergency and hospital care.”
The 2009 Legislative Session is scheduled to adjourn May 18. Until then, Reps. Newton and Dittrich encourage all residents of Coon Rapids, Andover, Champlin, and the surrounding area 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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