SARANAC LAKE - Between the rest of this fiscal year and the next in 2009-10, Gov. David Paterson's budget proposal would represent a $531,000 loss to Adirondack Medical Center, AMC officials said Friday.
This hit to AMC's bottom line is the result of reduction in Medicaid rates, elimination of the trend factor, and a reinstatement of the gross receipts tax on all income received by a hospital.
Hospital officials said this, plus the funding cuts, would cause them to cut services and jobs.
AMC says its two nursing homes would take also take big hits: AMC-Uihlein in Lake Placid would lose $479,000, and AMC-Mercy in Tupper Lake would lose $220,000 between now and 2010 under the budget cuts proposed by the governor, due to delays in nursing home rebasing rates, across the board cuts in Medicaid, and elimination of the trend factor.
In all, this represents an enterprise-wide loss of $1.23 million if Paterson's cuts are approved as proposed, according to AMC.
"Like most hospitals in the state, AMC's operating margin cannot afford to absorb such a massive funding cut," an AMC press release said.
"While we understand the need for getting spending under control in New York state, there needs to be a shared sacrifice among all parties involved," AMC Communications Manager Joe Riccio said. "With all due respect, the governor's proposal unfairly targets vital health care providers such as Adirondack Medical Center."
"AMC and the Tri-Lakes community can ill afford a loss of any jobs, and the vital health and human services our residents turn to in times of economic hardship," the hospital said in a prepared statement.