The Unkindest Cut
OWATONNA, Minn. 04/09/2009-- Statement by Dorothy Erdmann, Owatonna Hospital president, on the proposed health care funding cuts at the state level.
Given the challenging state of today’s economy, many of us are looking at ways to cut back on personal spending, and Minnesota’s policymakers, facing a multi-billion dollar deficit, are no exception.
But, too often in recent years, hospital reimbursement and state public program eligibility have borne the brunt of the cuts to balance the state budget. Cuts to health and human services hurt all Minnesotans—but they hurt our vulnerable populations the most.
In today’s economy, any of us could find ourselves among the most vulnerable. Cuts to health and human services hurt our neighbors, friends, co-workers and families right here in Owatonna. In the past year, nearly 1,000 people have lost their jobs in Owatonna. Now is not the time for Minnesota to cut more people from Medicaid, MNCare or General Assistance programs. Many of our farming families rely on MNCare for their health insurance coverage. Current proposals would result in 55,000 Minnesotans who are currently covered by these programs to lose their coverage. Minnesota should balance the budget without disproportionate cuts to health and human services.
When the state cuts funding for education or health care, it cuts funding for our basic necessities. Local communities and hospitals pick up the slack, but at what cost? We need both fiscal restraint and new revenue to ensure we’re able to continue meeting the needs in our community.
What’s the impact on Owatonna and Owatonna Hospital?
At Owatonna Hospital, part of Allina Hospitals & Clinics, we see that patients without insurance often put off getting the care they need, and many end up in the emergency rooms with far more serious (and costly) health issues that could have been avoided.
We’re already seeing a significant increase in the charity care provided at Owatonna Hospital this year, and it’s not unique to our hospital. Statewide, care for which hospitals receive no payment is up 132 percent over the last five years.
Annually, Owatonna Hospital provides $2.1 million in uncompensated care. This includes charity care, which is caring for patients who are unable to pay, have no health insurance, or for whom the government-sponsored Medicaid program does not cover the full cost of services.
As Minnesota works to resolve the deficit, it’s important to remember that hospitals and health care providers are a critical part of our community – we prevent illness, restore health and hope, and contribute significantly to the economic engines that make our communities great places to live, work and play.
For example, Owatonna Hospital employs more than 300 people and more than 300 Allina employees live in our community (Senate District 26). What’s more, Owatonna Hospital provides $2.1 million in uncompensated care annually and the overall economic impact of Owatonna Hospital for this community is $97.6 million.
Lastly, Allina supports Minnesota’s health reforms—we’re implementing medical homes, collaborating on initiatives to improve overall health by reducing tobacco use and obesity and constantly working to reduce costs while preserving access to quality healthcare and reimbursement that makes it possible.
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