As the 2009-2010 state fiscal year begins, the Governor and legislative leaders remain far apart in their negotiations over the budget. This is the seventh year in a row that a state budget has not been passed before the constitutional deadline, and it is occurring against a backdrop of a fiscal year revenue shortfall of $3.25 billion. Legislative leaders and the Governor met this week to discuss budget specifics, including the Department of Public Welfare’s Medical Assistance line items, and plan to meet again after the July 4 holiday. Key to the discussions is reaching agreement on the overall spending package and how to increase revenues to meet spending needs. An agreement is not expected to be reached for several weeks.

Several bills related to health care recently were signed into law by Governor Rendell regarding health insurance for the unemployed, health insurance for dependents adults, preventable serious adverse events, and the reauthorization of the Pennsylvania Health Care Cost Containment Council. You now can see how your legislators voted on these bills at PAHospitalsAdvocacy.org.

More than 13,000 Pennsylvania jobs could be lost if $280 million in proposed hospital payment cuts are not restored by the General Assembly and the Governor. The estimate, released today by HAP, looks at the potential effect of the state budget proposal on direct and indirect hospital employment. “Job cuts of this magnitude will translate into reduced access to hospital care for Pennsylvania’s citizens as funding is eliminated for trauma centers, burn centers, obstetrical and neonatal services, medical and health professional education, small and rural hospitals, and hospital services for uninsured adults,” said HAP President and CEO Carolyn F. Scanlan in a news release. “In addition, economically, businesses and their communities will be affected as hospitals are forced to reduce employees.”