Governor Rendell introduced his final budget on February 9, a $29 billion 2010–2011 state budget, which reflects an increase of $1.15 billion or 4.1 percent over the 2009–2010 budget. The Governor’s budget calls for cuts in hospital Medicaid payments by nearly $31.9 million in state funds; (approx. $73.4 million with federal matching funds). This budget proposal comes at a time when Pennsylvania remains challenged by the economic recession, Medicaid enrollment is increasing, and more people are losing health insurance due to unemployment. The Governor’s proposed hospital budget cuts put the state’s leading employers at risk, by threatening one of the commonwealth’s few sources of economic and employment stability—and jeopardizing patient access to care.
Following the release of the budget proposal, the legislature will conduct budget hearings through the end of February and into early March. Since 2010 is a general election, legislative leaders are already indicating that they want a budget to be enacted on time and will not be supportive of broad-based tax increases. HAP will be sending members details about the budget and its effect on hospitals and other health care-related programs.
