Finance panel cuts funding for state's hospital system
The Maui News:
Finance panel cuts funding for state's hospital system
By VALERIE MONSON, Staff Writer
WAILUKU - In what seems to be an annual ritual, the state Legislature is once again trying to slash funding for the state hospital system, threatening essential services at Maui Memorial Medical Center and other facilities.
"We hate to talk in these terms of reducing services, but we're going to have to look at taking some drastic action if the funds are not approved," said John Schaumburg, chief executive officer at Maui Memorial, on Tuesday. "Health care is so important we don't like to be put in the position of thinking about cutting services, but if we can't afford to do something, we can't afford to do something."
As part of its version of the state's supplemental budget, the House Finance Committee has recommended chopping $11 million of the $31 million requested by Hawaii Health Systems Corp., the umbrella organization that oversees Maui Memorial and 11 other small hospitals and clinics around the state. Unless there's a last-minute amendment on the floor Thursday when the full House will vote on the budget, it's doubtful the original amount will be restored. After that, it will be up to the Senate to consider the entire request when the bill crosses over.
Schaumburg and other HHSC officials are understandably worried.
"It's even more critical than in previous years that we be fully funded," said Kelley Roberson, chief operating officer for HHSC. "This year, there's no fat, less give and no options."
Sen. Roz Baker, who is the Senate Health Committee chairwoman, was aghast at the House cuts, saying, "That's cutting into the bone . . . That's just not acceptable."
She said she is discussing the HHSC budget with the leaders of the Senate Ways and Means Committee and believes that the cuts can be restored "but maybe not all of the funds."
"I can't believe that there are Neighbor Island legislators who don't understand that they are cutting services," she said, pointing out that the hospitals and medical centers on the Big Island, Maui, Lanai and Kauai are all affected.
"We're going to see massive service cuts on the Neighbor Islands," she said, if the funding is not restored.
Communities that could be impacted by the cuts are being asked to contact their lawmakers in both the House and Senate. In Maui County, Maui Memorial, Lanai Community Hospital and Kula Hospital are included in the network.
Last year, the Legislature allocated nearly $32 million to HHSC, but that covered only the first year of the two-year budget, forcing officials to return this session for supplemental funds. Of the $31 million proposed this year, HHSC has been mandated by the state to pay $20 million for increases to the Employee Retirement System. Roberson said he didn't know if it was "coincidental or intentional" that the amount approved for HHSC is the exact amount that must go to the retirement fund.
Roberson said HHSC worked closely with the office of Gov. Linda Lingle and the administration's Department of Budget & Finance before submitting its request. Lingle included the full $31 million in her budget.
"We actually wanted more than that," said Roberson. "These figures are based on the best case scenario for everything: best case for revenues, best case for reducing expenses and best case for collections."
Roberson said the system had to make up for $45 million in losses last year because of low reimbursements from Medicare, Medicaid and Med-Quest that failed to cover the costs of the care provided.
Another $17 million was lost because of indigent patients who couldn't pay.
The $31.5 million request represents a subsidy of about 10 percent of HHSC's projected $300 million budget.
Many public hospitals on the Mainland receive state subsidies of 25 percent.
Schaumburg said it's important to remember that the hospitals serve not only residents, but visitors, as well. Communities across the state will be impacted if services must be cut, he said.
"It affects our family and friends on Kauai and the Big Island, too," he said. HHSC was created by the Legislature in 1996 to reduce the chronic losses suffered by the 12 hospitals and clinics when they were under the state Department of Health's tangle of red tape.
Many of the HHSC facilities are in rural areas far from urban centers, while Maui Memorial is the only acute-care hospital on the island.
Valerie Monson can be reached at vmonson@mauinews.com.
Finance panel cuts funding for state's hospital system
By VALERIE MONSON, Staff Writer
WAILUKU - In what seems to be an annual ritual, the state Legislature is once again trying to slash funding for the state hospital system, threatening essential services at Maui Memorial Medical Center and other facilities.
"We hate to talk in these terms of reducing services, but we're going to have to look at taking some drastic action if the funds are not approved," said John Schaumburg, chief executive officer at Maui Memorial, on Tuesday. "Health care is so important we don't like to be put in the position of thinking about cutting services, but if we can't afford to do something, we can't afford to do something."
As part of its version of the state's supplemental budget, the House Finance Committee has recommended chopping $11 million of the $31 million requested by Hawaii Health Systems Corp., the umbrella organization that oversees Maui Memorial and 11 other small hospitals and clinics around the state. Unless there's a last-minute amendment on the floor Thursday when the full House will vote on the budget, it's doubtful the original amount will be restored. After that, it will be up to the Senate to consider the entire request when the bill crosses over.
Schaumburg and other HHSC officials are understandably worried.
"It's even more critical than in previous years that we be fully funded," said Kelley Roberson, chief operating officer for HHSC. "This year, there's no fat, less give and no options."
Sen. Roz Baker, who is the Senate Health Committee chairwoman, was aghast at the House cuts, saying, "That's cutting into the bone . . . That's just not acceptable."
She said she is discussing the HHSC budget with the leaders of the Senate Ways and Means Committee and believes that the cuts can be restored "but maybe not all of the funds."
"I can't believe that there are Neighbor Island legislators who don't understand that they are cutting services," she said, pointing out that the hospitals and medical centers on the Big Island, Maui, Lanai and Kauai are all affected.
"We're going to see massive service cuts on the Neighbor Islands," she said, if the funding is not restored.
Communities that could be impacted by the cuts are being asked to contact their lawmakers in both the House and Senate. In Maui County, Maui Memorial, Lanai Community Hospital and Kula Hospital are included in the network.
Last year, the Legislature allocated nearly $32 million to HHSC, but that covered only the first year of the two-year budget, forcing officials to return this session for supplemental funds. Of the $31 million proposed this year, HHSC has been mandated by the state to pay $20 million for increases to the Employee Retirement System. Roberson said he didn't know if it was "coincidental or intentional" that the amount approved for HHSC is the exact amount that must go to the retirement fund.
Roberson said HHSC worked closely with the office of Gov. Linda Lingle and the administration's Department of Budget & Finance before submitting its request. Lingle included the full $31 million in her budget.
"We actually wanted more than that," said Roberson. "These figures are based on the best case scenario for everything: best case for revenues, best case for reducing expenses and best case for collections."
Roberson said the system had to make up for $45 million in losses last year because of low reimbursements from Medicare, Medicaid and Med-Quest that failed to cover the costs of the care provided.
Another $17 million was lost because of indigent patients who couldn't pay.
The $31.5 million request represents a subsidy of about 10 percent of HHSC's projected $300 million budget.
Many public hospitals on the Mainland receive state subsidies of 25 percent.
Schaumburg said it's important to remember that the hospitals serve not only residents, but visitors, as well. Communities across the state will be impacted if services must be cut, he said.
"It affects our family and friends on Kauai and the Big Island, too," he said. HHSC was created by the Legislature in 1996 to reduce the chronic losses suffered by the 12 hospitals and clinics when they were under the state Department of Health's tangle of red tape.
Many of the HHSC facilities are in rural areas far from urban centers, while Maui Memorial is the only acute-care hospital on the island.
Valerie Monson can be reached at vmonson@mauinews.com.
posted by DP at 4:32 PM
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