Minnesota House of Representatives


State Representative Erin Murphy

331 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.

For more information contact: Michael Howard 651-296-4169

Posted: 2011-05-26 00:00:00
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Press/News Releases

Murphy: Hospital Job Cuts Tip of the Iceberg under GOP plan

Saint Paul, Minnesota – State Rep. Erin Murphy (DFL – St. Paul) responded to news today that Fairview Health Services would cut 240 jobs this month in response to “operating losses" and the “uncertainty surrounding health care funding from the state of Minnesota.”

Under the GOP budget proposal, the cut to Fairview Health Services would result in an estimated $164.8 million in uncompensated care.

“At the beginning of the year Republicans said they would have a ‘laser like’ focus on jobs. I hope they are taking notice today, because if their budget becomes law these job cuts at Fairview Health Services are the tip of the iceberg.

The reality is the GOP budget decimates hospitals, cutting their reimbursement by more than $1 billion. Their plan eliminates health care for over 140,000 Minnesotans and expects hospitals to pick up the tab in uncompensated care. The costs borne by providers spread to the rest of us in the form of higher premiums, longer ER waits and thousands of lost jobs.

As we continue to recover from this recession it is important to note that 1 in 8 jobs in our economy come from the health care sector. Now is the worst time to weaken our economy with more job cuts. It’s time for GOP leaders to be honest with Minnesotans about their choice to deeply wound our health care system, all to protect the most fortunate 2% of Minnesotans from contributing to the budget solution.” -State Rep. Erin Murphy

Hospitals throughout Minnesota would see large cuts. The list below includes the estimated impact of the GOP budget on Fairview Hospitals.

Total Increased Uncompensated Care Estimates*

Fairview Ridges Hospital, Burnsville, $6.16 million
Fairview University Medical Center - Mesabi, Hibbing, $7.94 million
U of M, Fairview, Minneapolis, $135.24 million
Fairview Southdale Hospital, Minneapolis, $9.9 million
Fairview Northland Medical Center, Princeton, $1.6 million
Fairview Red Wing Medical Center, Red Wing, $1.6 million
Fairview Lakes Medical Center, Wyoming, $2.36 million

Fairview Total Uncompensated Care under GOP Plan: $164.8 million

*Source: Minnesota Hospital Association


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