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State Representative Jerry Newton

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100 Rev. Dr. Martin Luther King Jr. Blvd.
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Posted: 2009-04-29 00:00:00
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Press/News Releases

NEWTON VOTES TO PROTECT HOSPITALS, MOST VULNERABLE


ST. PAUL, MN - The Minnesota House of Representatives passed its Health and Human Services Omnibus Finance Bill (HF1362) Monday; legislation that contributes $400 million in cuts to resolving the state’s worst ever budget crisis. Through months of public testimony and careful work on the Health and Human Services Committee, the House crafted a meticulous piece of health care legislation that minimizes cuts to hospitals, protects health care for 113,000 working Minnesotans, provides coverage for an additional 50,000 uninsured children, maintains funding for nursing homes, and reduces cuts for mental health services and programs for people with disabilities. The bill passed by a vote of 85 to 49.

“Minnesota is facing a record $6.4 billion budget deficit requiring that difficult and strategic decisions be made to maintain critical services and preserve our nation leading quality of life," said State Rep. Jerry Newton (DFL - Coon Rapids), who voted in favor of the bill. “This bill makes some serious cuts, but minimizes the damage on Minnesota’s most vulnerable citizens. The sick, the elderly, and the disabled deserve our diligence in balancing this budget responsibly in a way that doesn’t inflict unnecessary damage on their health and wellbeing.”

Rep. Newton drew several key distinctions between the House health care plan and that proposed by Governor Tim Pawlenty. The governor’s plan would use the entire Health Care Access Fund, over $1 billion paid for by health care providers, to help balance the $6.4 billion budget shortfall. Such an action would eliminate health care coverage for an estimated 113,000 working Minnesotans. The House plan preserves the fund and adds 50,000 children to the rolls through targeted efficiencies and strategic use of federal recovery dollars.

“The governor’s use of Health Care Access dollars to pay off the state’s deficit is irresponsible,” said Rep. Newton. “Every time we go to the doctor, our health care providers make a dedicated payment they expect will be spent solely to reduce the cost of uncompensated care on our hospitals and clinics, and provide quality health care coverage for working Minnesotans that need it. In this difficult time, we need to maintain that commitment in order to keep costs down and provide coverage for working Minnesotans and low-income children.”

Additionally, Rep. Newton points to the differences between the House and Governor Pawlenty on funding hospitals throughout the state. 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. Should the governor’s 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,” Newton said. “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 last week advocating for the more reasonable House plan passed today that would help keep hospitals whole through the budget crisis. Under the budget plan passed 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 become law, losses to Mercy Hospital would drop more than $21.3 million to just $1.6 million over the next two years. That’s 0.5 percent of the hospital’s gross revenue.

“Health care is one area of the state’s budget that needs to be addressed with particular care with a diligent awareness of the consequences these cuts have on Minnesota’s health and future,” said Rep. Newton. “I am committed to ensuring we do this work responsibly, in a way that protects our most vulnerable citizens from shouldering the brunt of this unprecedented budget shortfall.”

HF1362 must now be reconciled in conference committee with another version of the bill passed earlier today in the Minnesota Senate. The Senate bill (SF695) cuts approximately $600 million in funding for health care and human service programs. Rep. Newton encourages all residents of District 49B to contact him and Governor Pawlenty in the coming weeks with questions, concerns, and suggestions. The legislative session is scheduled to adjourn May 18, 2009.

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