State cuts more than $550,000 from East End hospitals

06/15/2010 12:00 AM |

The East End’s three hospitals will lose $557,000 in the latest round of budget cuts passed Monday night by the state Legislature to keep the government from shutting down.
The so-called extender package approved Monday is the 11th since April 1, when the state, as usual, failed to adopt an on-time budget.
The extension pays for state operations only through June 20, when another would be necessary, unless a budget agreement is reached.
Peconic Bay Medical Center in Riverhead takes the largest hit of the three East End hospitals, with $220,000 in new cuts. Southampton Hospital is losing $169,000 and Eastern Long Island Hospital $168,000.
Added to state losses is a cut in federal funds that results from what East End Health Alliance spokesman Andrew Mitchell called “the multiplier.” When the state cuts funds, he explained in an interview on Friday, it affects Medicaid reimbursements from the federal government, which purposely made more money available to hospitals to offset some of the effects of the recession. New York State’s action is “diametrically opposed” to the federal effort, Mr. Mitchell said.
For the complete story check out Thursday’s Suffolk Times.
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