Regions Hospital statement on proposed funding cuts to health care

May 15, 2009

ST. PAUL, Minn. - It is unconscionable that Governor Pawlenty is proposing to completely eliminate General Assistance Medical Care, a program that provides health insurance for adults whose income is less than $8,000 a year. This means that more than 30,000 more people could be forced to go to emergency rooms at safety net hospitals when they are sick, have a serious mental health crisis or a life threatening illness.

This is not only an unnecessary moral and human tragedy; it is a fiscal nightmare for those hospitals. Most people with General Assistance Medical Care get care at just two safety net hospitals in the metro area. Those hospitals will continue to care for these vulnerable people. But they will not be paid for providing that care. The impact is devastating.

Last year Regions Hospital provided emergency medical care for 27,000 patients who did not have health insurance or could not afford to pay for their care. As a result, Regions had to absorb the cost for that care which was more than $46 million. If the legislature and Governor do not refund GAMC before Monday, the red ink at Regions alone will more than triple over the next two years, leaving more than $150 million in unpaid medical bills.

This proposal is a 180 degree turn around from the health care proposal the Governor and legislature agreed on in the past two years. That proposal wisely emphasizes prevention and primary care - the most efficient, cost effective and humane way to provide care.

There is time for the legislature and Governor to fix this problem in the remaining days of the legislation session. We urge all sides to work together to find a solution to this problem.

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Contact: 612-618-1273
Pager: 651-629-0411