Hospitals cautiously pleased with state funds

While hospital executives are pleased with that announcement from Gov. George Pataki and the Legislature, they also are concerned that the state will not follow up and provide the money, especially in 2003 and '04, and that the amounts will not make a significant dent in the healthcare employment crisis.

The money was allocated last week in varying amounts to hospitals and nursing homes throughout the region, based on the number of employees, as well as their salaries. Part of the money will be drawn from extra funds derived from a tax on cigarettes, which went from $1.11 to $1.50 a pack under the act.

Seton's health

In the first year, Seton Health is slated to receive $265,000, with the remaining $1.3 million coming over the next two years.

"Spread over 1,400 employees, it's not a lot of money," he said.

Caution

"I think most of us have great concern about how this bill is being funded," he continued. "We're a little concerned that when you keep taxing the golden goose -- smokers -- do they stop [buying cigarettes]? I don't think you can assume every smoker will turn over an extra 49 cents."

Robert Hinckley, deputy commissioner for the state Health Department, countered that the package for hospitals, nursing homes and personal care services, which totals $1.85 billion for the entire state, is fiscally sound.

The gross receipts tax, which is six percent, was reinstated because of the state's financial burdens following the terrorist attacks on Sept. 11. Mr. Hinckley said that healthcare organizations should be able to have the amount they spend on that tax reimbursed through federal Medicaid funds.

Lion's share

"We need to ensure our wages are in line with the marketplace, which they are," he said.

St. Mary's Hospital at Amsterdam is expected to receive $1 million, which it intends to spend on salary increases for its 100 registered nurses and on advertising for additional workers.

"Right now, we're using a lot of agency nurses," said Peter Capobianco, spokesman for St. Mary's. "It's very costly."

The hospital has had to close rooms in the last year because 20 percent of its available nursing positions were vacant. "The nurses are there, but they are going into other fields. Hospital work is very difficult work," Mr. Capobianco said. "We need to encourage nurses, to show them hospital work is very rewarding."

Increases

This year, the hospital is expected to get $200,000; in 2003 and '04, it has been budgeted $400,000 and $600,000, respectively.

"We're fairly confident we will see the monies in 2002, but everything is contingent upon where the state gets its funds," Ms. Mack said.

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