Gov. Donald L. Carcieri’s proposed supplemental budget for fiscal 2009, unveiled on Wednesday, will cost hospitals in the state $35.7 million, further destabilizing a fragile sector, the Hospital Association of Rhode Island said last week.
Carcieri and the General Assembly need to close an expected $356.4 million deficit in the current year’s budget, and he’s proposing to do so with a cigarette-tax hike, more than $74 million in cuts to municipalities and schools, pension-benefit rollbacks, the sale of three state-owned properties and eligibility limitations in the RIte Care program, among other things.
The budget plan also would cut state payments to hospitals, including some for services already provided, said HARI, which represents a majority of privately owned hospitals in the state (but not the Care New England system or Landmark Medical Center).
“The governor’s proposal is a staggering blow to hospitals struggling in a weakened economy,” said HARI President Edward J. Quinlan.
“Each year, hospitals create operating budgets based on the state budget – a budget approved by the General Assembly and signed into law by the governor,” he added. “This action negates previous commitments made to hospitals to pay for services provided to the citizens of Rhode Island. We are extremely disappointed over the lack of consultation with our members and refusal to acknowledge the stress under which hospitals operate.”
Quinlan noted that in recent years, as many as two-thirds of hospitals in Rhode Island have reported operating losses. Hospitals are also “unique,” HARI said in a statement, “with no ability to raise prices or discontinue services. They stand ready 24 hours a day, seven days a week and 365 days a year to care for patients during their greatest time of need.”
Rhode Islanders use local hospitals on more than 2.5 million occasions per year, HARI said, and in this economic crisis, more and more patients are uninsured and/or unable to cover the cost of their care. Last year, hospitals provided more than $131 million in uncompensated care, HARI said, and with proposed Medicare eligibility cuts in Carcieri’s budget, “this number will certainly grow.”
Quinlan called the budget proposal a “cost shift,” adding that instead of what Carcieri is doing, the government and the private sector should be working collaboratively “to develop policy and fiscal solutions that meet the needs of the people of Rhode Island.”
The Hospital Association of Rhode Island is a statewide trade organization that assists member hospitals through advocacy, representation, education and services. For more information, visit www.hari.org.
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