Englewood — The proposed federal budget could cost Englewood Hospital and Medical Center an estimated $55 million over a five year stretch, hospital executives said last week. And that is a conservative estimate, executives said.
The Bush administration proposed slashing $200 billion from Medicare and Medicaid, which translates to a $3 billion hit to hospitals in New Jersey.
If the federal government approves the Bush budget, hospital Vice President of Planning and Development Michael Pietrowicz said, "[This] could impact our ability to provide services."
Bush’s budget proposal is just the latest negative news about the health industry.
In New Jersey, according to Pietrowicz, roughly 50 percent of the hospitals, in the state, are losing money.
And recently, there has been several hospitals closing, including the recent financial turmoil at Pascack Valley Hospital.
Nationally the scene is much of the same, which is why the latest proposed cuts are sounding off alarms.
If the cuts are approved, Englewood, which has a yearly operating budget of $330-million could see that decline to roughly $320-$315-million — if the administration can’t find alternate revenue sources.
"I wouldn’t want to sugarcoat it," Pietrowicz said. "To sustain a cut any given year of $10 to $15 million can not be made." He added that it would force the hospital to make changes in the programs they offer.
A two-front fight
As if trying to fight the federal government for funding wasn’t hard enough, locally, hospitals, including Englewood, are bracing for potential funding problems from the state.
"The state of New Jersey is looking at and considering ways to adjust or reduce charity-care funding.
Charity Care Assistance is care provided either free or at a reduced cost to patients who receive inpatient and outpatient services.
It is generally available to patients who don’t have health coverage, not eligible for government or private programs and meet income and asset requirements.
"The state funding has been woefully inadequate," he said. "These things would concern any hospital."
And they have.
However, Englewood Hospital executives aren’t giving up.
The state Health Commissioner plans to lobby congressional leaders. Englewood will also conduct its own lobbying efforts.
The hospital has 2,500 employees, 1,000, of which are doctors, who would all be impacted under this plan, Pietrowicz said.
"This is not isolated to Englewood."
