The Buffalo Niagara Partnership takes a strong stance in support of rationalizing New York's (and Western New York's) health-care system, in an open letter from President/CEO Andrew Rudnick.
For more than 20 years, the local business community has called for reengineering the delivery of health care in our region. Our objective: to improve the quality of care, and reign in ever-increasing costs to patients, taxpayers and employers.
Efforts to achieve this through voluntary action have been unsuccessful. That is why I see great opportunity in the recommendations of the Commission on Health Care Facilities in the 21st Century, and the $2.5 billion in state and federal dollars allocated to support their implementation.
The Business Council of New York State estimates the commission's recommendations would reduce Medicaid costs by an estimated $249 million a year, with similar savings for employers and other private purchasers of health insurance. Hospitals and other service providers would reap an estimated $721 million annually that could be used to help pay restructuring and other costs.
The recommendations will yield challenges for local hospitals as they’re implemented. But our community will emerge in the near future with a health care delivery system that is stronger, better and more affordable. That’s why the Partnership’s position on this issue has been, and is, that the status quo doesn’t work, and isn’t an option.
It’s important to keep in mind these recommendations were not developed by people with no ties to health care or Buffalo Niagara, but by representatives from our region, and experts in the delivery of health care services. The commission was mandated to be sensitive to local needs throughout its deliberations, and was comprised of statewide and regional members (nine total from our region), and a regional advisory committee representing Bufalo Niagara that included representatives from local hospital systems.
There's more, well worth reading. The open letter is available
here.
Union won't fight hospital closing; 1199 holds fire for budget scrap (David Saltonstall/Daily News)
Union insiders told the Daily News that - while unhappy with the sweeping recommendations of the state's hospital-closing Berger Commission - they are inclined to save their firepower for other looming battles with Governor-elect Eliot Spitzer.
"Our fight is likely to be when we see the executive budget," one high-ranking Local 1199 source told The News, referring to Spitzer's first budget in January and the likelihood it will include further health care cuts.
While anything can happen, experts said the likely retreat by Local 1199 of the Service Employees International Union - widely viewed as the most potent political player in Albany - would make stopping the proposed hospital closures all but impossible.
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Union officials said their decision not to go to war over the closures was an acknowledgment that, while painful, the plan was at least done in a "rational way."
There is "money behind it to make sure that patients can get the care they need," and to assure "that members of our union are secure," said one union insider.
Union leaders also seemed to acknowledge that starting a very public battle with a popular new governor - who campaigned on promises to cut health care costs by up to $1 billion - could well hurt them later.
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Yesterday, the state quickly put one $15 million contract for worker retraining out to bid, with "health worker unions" specifically mentioned as among the eligible recipients. Local 1199 officials indicated they'd be among the bidders.
Berger, Spitzer see more health care cuts coming (Jay Gallagher/Journal-News)
The plan to cut the state's health-care system proposed this week, while called harsh by some union leaders and hospital executives, represents merely a start on reductions that need to be made, the chairman of the commission that recommended the cuts said in an interview yesterday.
Later, Gov.-elect Eliot Spitzer disclosed that the savings from the plan to state taxpayers from the proposed closings is likely to be minimal. He reiterated that the "bloated system" needs to be further cut.
The commission chairman, former state Social Services Commissioner Stephen Berger, said the panel didn't propose more cuts because they would be too hard for the health-care system to absorb.
"Our goal was to improve the system to give additional strength to what remains," he said. "We decided it was not desirable by going by where we should be in five or six years in one fell swoop."
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The cuts recommended by the commission, while reducing spending by about $800 million overall, will save only about $250 million in Medicaid costs, Spitzer said, with the rest going to the federal government and private insurers. Medicaid is the health-insurance plan for poor people that the federal government pays half of. The state pays just over one-third and local governments about 16 percent.
So the state savings from the plan could be less than $100 million. That's a relative drop in the bucket for the $46 billion program, which is the most expensive of any state.
Spitzer has said that far more needs to be cut to help pay for other spending in the state budget, including more cash for schools and a tax cut.
The key to further savings, Berger said, is reducing the average length of stay in hospitals. He said it is now a little longer than six days in New York, compared to the national figure of 4.8 days.
"New York historically has been two days or so longer than the national average," he said. "It's the way we practice medicine, and it needs to change."
Pataki the Deregulator Now Sides With Firmer Control of Hospitals (Richard Perez-Pena/New York Times)
The way New York controlled hospitals in decades past would have been unthinkable in most states. The state decided whether hospitals could add wards or expensive machinery, it plotted the shape of the industry and forced it to shrink, and it set the price of every service, from stitching cuts to delivering babies.
Gov. George E. Pataki set out to change that when he took office 12 years ago, saying that competition and the free market, not regulators, should make such decisions. The state stopped setting rates, it stopped picking survivors and casualties among hospitals, and it blocked costly new projects less often.
But on Wednesday, Mr. Pataki, a Republican, embraced the report of a commission, appointed mostly by him, marking a partial return to the state control that his administration once shunned. The Commission on Health Care Facilities in the 21st Century set out to determine in detail the right size and shape of the hospital and nursing home industries.
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The hospital price-setting system the state imposed in 1983 essentially guaranteed every hospital a small but steady profit margin. But it also discouraged efficiency, and it is hard to find anyone today who advocates a return to it.
There's much more in the article, available here.
Hospital study’s recommendations should be embraced (Letter/Schenectady Daily Gazette, for subscribers)
Let us realize that this is an opportunity to enhance the care we provide, to improve the financial footing of our system for future decades and to pursue our communitywide mission of excellence.
Let us avoid the temptation to regard the changes ahead of us as "bad." Let us also hope that the cost savings sought by the commission are not lost on highpriced lawyers and consultants in endless financial and legal wrangling.
Silver's 'Sacred Cow' Cheats Hosp Slaughter (Carl Campanile/
New York Post)
The state hospital downsizing commission rejected a recommendation from its New York City experts to shut down struggling Downtown Hospital - protecting the biggest medical center on the turf of Assembly Speaker Sheldon Silver, The Post has learned. mmission flatly turned aside a closure recommendation in the city, and the move casts doubt on the panel's claims that there were no political "sacred cows."
Berger's Turkey, Cont'd. (Editorial/New York Post)
Well, no wonder so many key players are backing that long-awaited plan for a modest restructuring of New York's overbuilt, underused, ruinously expensive hospital system.
It seems that there's a whole lot of winking and nodding going on - and not much restructuring.
To help health care system, time to do nothing (Jim Klurfeld/Newsday)
At first blush, this should be a piece of cake for our representatives in Albany. All they have to do is do nothing. And, as we have come to learn over the years, the folks in Albany are very good at doing nothing. Usually, give them a choice between something and nothing and they'll choose nothing every time.
What I'm talking about here is the Berger Commission report to restructure the hospital and nursing home systems in New York State. The long-awaited report of the commission was issued Tuesday and, just as the commission wanted, it shook up the state's health care industry.
Hospital privatization not a good choice (Public Employees Federation letter/Post-Standard)
It's imperative that the taxpaying residents of Central New York react to the recommendations of the Healthcare Commission. It has proposed that Upstate and Crouse merge and be governed by an entity other that SUNY. This means privatization - not a good choice.