The budget that President Bush proposed yesterday
includes deep cuts in spending to train young
doctors, cuts that would hit New York especially
hard, eliminating several hundred million dollars
a year in payments to teaching hospitals around
the state.
The proposals arrived just days after Mr.
Bush put forward a different set of cuts
that would affect New York much more than
the rest of the country, and after Gov.
Eliot Spitzer proposed significant
health care cuts of his own.
The combined reductions would total more than 4
percent of New York hospitals’ total incomes —
well over $1 billion a year — a prospect that left
industry officials and elected officials
struggling to describe the dire effects.
“This is the worst, the most damaging
scenario,” said Kenneth E. Raske, president of the
Greater New York Hospital Association.
In particular, the cuts would take money from
the academic medical centers that teach new
doctors and do a large share of advanced medical
research. New York City has by far the largest
concentration of teaching hospitals in the
country, training about one in seven of the
nation’s interns and residents, many of whom go on
to practice elsewhere.
A hospital-by-hospital analysis by Mr. Raske’s
group shows how uneven Mr. Spitzer’s proposed cuts
would be, with the losses concentrated in the
city. In all, the governor would cut about 1
percent from hospitals’ revenue.
While some hospitals would actually gain money
from the changes, others would see significant
cuts, like two hospitals in Brooklyn that are
already short of cash — Interfaith Medical Center,
which would lose 6 percent of its total income,
and Brooklyn Hospital Center, which would lose 4
percent.
On seeing the plans laid out by Mr. Bush,
Senators
Charles E. Schumer and
Hillary Rodham Clinton, members of the new
Democratic majority in Congress, vowed to fight
them.
“Much of the damage that the president seeks to
do will be undone, but to say we can eliminate all
of it would not be right,” Mr. Schumer said.
He called the president’s proposals “an all-out
assault on graduate medical education” and a
“dagger to the heart of New York health care.”
In its budget summaries, the Bush
administration described the changes as needed to
rein in rapidly growing health care spending, and
to fight the practice of expanding government
programs beyond their intended boundaries.
Medicare, the federal health plan for the
elderly and the disabled, is a major supporter of
training programs for interns and residents at
teaching hospitals. In New York and some other
states, Medicaid, the program for the poor, also
pitches in for that training — known as Graduate
Medical Education, or G.M.E. — while other states
have opted not to take that step.
Mr. Bush proposed gradually eliminating that
use of Medicaid money — about $600 million a year
in federal funds for New York, more than any other
state.
“Current law does not explicitly authorize such
payments,” the administration’s budget summary
said. “Paying for G.M.E. is outside of Medicaid’s
primary purpose, which is to provide medical care
to low-income individuals.”
The president also called yesterday for
abolition of one type of Medicare payment for
doctor training — again, a cut that would
disproportionately affect New York. The hospital
group estimated the cost to New York hospitals at
more than $100 million a year.
Two weeks ago, Mr. Bush proposed a different
sort of cut in Medicaid that would affect only
certain public hospitals, particularly New York
City’s Health and Hospitals Corporation. The
corporation and
New York State estimated the cut to the city
hospitals at $350 million a year.
Mr. Spitzer has proposed cutting $1.2 billion a
year in health care costs, including more than
$350 million in hospital payments.
But the loss to individual hospitals would vary
widely, depending on their reliance on Medicaid,
how many doctors they train, and how much those
training programs have changed in size over the
last 25 years.
Under the Spitzer plan, St. Barnabas Hospital
in the Bronx would gain more than $7 million a
year, while
Beth Israel Medical Center in Manhattan would
lose almost $15 million, the most for any single
hospital, according to the Greater New York
Hospital Association. New York-Presbyterian
hospital, actually two very large hospitals that
merged, would lose almost $24 million a year.
Just 15 hospitals would absorb more than half
the losses for all of the state’s more than 200
hospitals, and 14 of the 15 are in New York City.
Most of the big losses would be suffered by
hospitals that are relatively successful
financially and in relatively affluent
neighborhoods, but there are notable exceptions,
like Interfaith and Brooklyn.
Mr. Spitzer has described his changes as
reforms designed to make the health care system
more sensible and responsive to patient needs. The
industry and its main union, 1199 United
Healthcare Workers East, say that in pursuit of
abstract theories, the governor would make cuts
that are so abrupt and deep that they would make
health care worse, not better.
Jennifer Cunningham, a consultant to 1199,
said, “The Bush and Spitzer cuts to teaching
hospitals would be a double-whammy — more than
double.”
Mayor
Michael R. Bloomberg weighed in yesterday,
saying that the governor had “set the right
overall priorities,” but that he feared damage to
teaching hospitals that are “one of the stars in
the crown” of New York health care.