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    Thursday, April 18, 2024

    Not enough hospital relief

    Perhaps it was the considerable criticism, or the growing drumbeat calling for a special session, or maybe it was just an honest change of heart, but whatever the reason it was good to hear Friday that the Malloy administration is restoring some of the devastating cuts it imposed on Connecticut’s hospitals.

    The state Office of Policy and Management announced that it would distribute $14.1 million to six small hospitals — Bristol, Day Kimball, Griffin, Charlotte Hungerford, Johnson and Milford. The move recognizes that the $63.8 million in emergency cuts to Medicaid programs announced last month were particularly damaging to small hospitals.

    But while welcomed news, we have to agree with the statement issued by Gov. Malloy’s fellow Democrat, Senate President Martin M. Looney of New Haven.

    “We appreciate that the governor has listened … and taken a first step in reversing these ill-conceived and devastating cuts to our community hospitals. The restorations cannot end here,” stated Sen. Looney.

    The move, for example, does nothing to help The William W. Backus Hospital in Norwich, affiliated with Hartford Healthcare, or Lawrence + Memorial Hospital in New London, which is seeking an affiliation with the Yale-New Haven Hospital network.

    In justifying the emergency cuts — just the latest in a series of state budget moves that have hit hospitals in the state — the Malloy administration continues to point to “healthy margins and robust executive compensation” among the larger hospitals and health networks.

    “In FY 14, nine hospitals had total margins over 9 percent and 14 hospitals over 5 percent,” stated OPM Friday in announcing the funding restoration for small hospitals only.

    This approach, intended to make the hospitals out be the greedy villain that can live well despite more cuts in Medicaid revenue, ignores the reality of the modern nonprofit health network. While hospitals may finish in the black, they support physician groups, visiting nurse and other operations that don’t do as well — in large part because Medicaid reimbursements are far less than the cost of providing service.

    Adding to the gut punch tied to the cuts is that it had a multiplier result, causing a loss in matching federal dollars nearly double the amount of the state reduction.

    As for the compensation paid to hospital CEOs, it is arguably excessive in many cases. Yet that compensation is chump change compared to the cuts Gov. Malloy imposed.

    While credit goes to the governor for responding in part, Friday’s announcement should be, as Sen. Looney observed, “a first step.”

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