New York Hospitals Would Lose Over $2.1 Billion Under Sequestration Cuts
February 25, 2013
Cuts on Top of $20 Billion in Reductions Already Being Implemented
ALBANY, NY — The Healthcare Association of New York State (HANYS) urges Congress to stop the implementation of sequestration which would result in $2.13 billion in Medicare cuts to New York’s hospitals and health systems. These reductions are in addition to more than $20 billion cuts providers already face over the next ten years in separate Medicare and federal Medicaid reductions.
“An additional $2 billion on top of the $20 billion in cuts our hospitals and health systems already face will have a profound impact on access to care,” said HANYS President Daniel Sisto. “This unprecedented level of reductions would significantly reduce patient access to care, and lead to longer drives and wait times, and additional layoffs and service reductions at facilities across the state. As deliberation continues, we encourage our Congressional Delegation to fight to prevent these dramatic Medicare cuts, or other cuts contained in any alternative plan, and protect patient access to health care services.”
According to HANYS’ analysis of public records, 6,135 jobs have been lost from hospitals and health systems since 2010.
If Congress fails to reach an agreement to delay sequestration, most federal programs will face significant cuts March 1. Medicare cuts, capped at 2%, would go in to effect April 1. These cuts total $2.13 billion for New York State hospitals. HANYS’ analysis of how these Medicare cuts will affect specific facilities can be found here.
Previous actions unrelated to sequestration have already led to New York hospitals facing more than $20 billion in federal cuts over the next ten years, including:
$15.9 billion from Affordable Care Act implementation;
$4.1 billion from Medicare inpatient coding reductions; and
$23.5 million in Medicare cuts in support to providers for patients’ unpaid “bad debt”.
The Healthcare Association of New York State (HANYS) is the only statewide hospital and continuing care association in New York State, representing 500 non-profit and public hospitals, nursing homes, home care agencies, and other health care organizations.