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HCA Testifies at Joint Legislative Budget Hearing To Urge Restoration of $100 Million in Proposed Home Health Care Cuts

New HANYS/Siena Research Institute Poll: 76% of New Yorkers Want Increased Funding for Home Health Care

In written testimony offered today to the Senate Finance and Assembly Ways and Means Committees, the Home Care Association of New York State (HCA) said the $100 million in home health care cuts contained in the 2008-09 Executive State Budget "will undermine the State's progress in health care reform, the stability of our agencies and, most importantly, our ability to provide appropriate patient care."

Today's testimony, presented by Victoria Hines, President and CEO of Visiting Nurse Service (VNS) of Rochester and Monroe County, and First-Vice Chair of HCA's Board of Directors, falls on the heels of a new HANYS/Siena Research Institute poll which found that 76 percent of New Yorkers want increased funding for home health care while only 3 percent support decreased funding, and 18 percent support keeping home health care funding at current levels.

Speaking on behalf of HCA, Hines called for rejection of the Governor's proposed home health care cuts that include slashed reimbursement rates to providers. These rates are based on 2005 data that fail to keep pace with current costs of providing home health care services. Since home health care services are provided in homes, not in hospitals or nursing homes, providers have been hit hard in recent years with growing personnel and recruitment expenditures, a surge in gas prices and increasingly complex patient care and case management needs.

"In order to appreciate the impact of the Governor's cuts, it is important to understand the enormous and growing financial pressures under which home health care is operating," Hines told the committee.

"These pressures stem from the high costs of staff recruitment and retention, mounting gasoline costs, costs associated with the shift from institutional to community-based care, enrollment of patients with more extensive health care needs and the increasing movement of patients from fee-for-service coverage into managed care."

Describing patient care activities at her agency, VNS of Rochester and Monroe County, Hines said: "More than half of VNS' service is provided to Medicaid patients. Our mission-driven purpose means we take all patients with need. But the Medicaid system, which does not reimburse to cost, allows no room for investment. When reimbursement is capped and trend factors do not keep up with inflation, we have a losing business proposition. Given these proposed cuts, on top of existing fiscal pressures, some agencies will choose to stop serving Medicaid patients, and some agencies will have to get out of the home care business altogether."

Earlier this month, HCA sent a letter to Governor Spitzer calling for his retraction of the $100 million in home care cuts during the 21-day amendment period, including his proposed:

"Taken together, all of these actions will cut into the bone of home care reimbursement — this at a time when further investment, not reduction, is desperately needed," Hines told the committee. "We know that the Governor has been a past advocate of home health care and believe that the Executive's proposals are made in the sincere attempt to contain Medicaid spending for the State. However, the proposals are misguided and will deal a severe blow to a sector that the patients and system are depending on more than ever."

HCA also today voiced support for several Budget proposals, including: continuation of the Statewide Workforce Investment essential for the recruitment and retention of home health care staff, funding for home telehealth and health information technology demonstration programs, and reimbursement to providers for costs associated with meeting Criminal History Record Check mandates.

"While there are a few reasons for encouragement in the Executive Budget, the vast majority of its home care proposals will have a devastating impact on providers' ability to function in a way that is most conducive to quality patient care," said HCA President Joanne Cunningham.

Committed to the principles of high-quality and cost-effective community based health care, the Home Care Association of New York State (HCA) assists its members on state and federal legislation, regulations and reimbursement issues pertinent to the home health field. As the premier home health care association in New York State, HCA represents more than 400 home health care providers, individuals and associate members who collectively provide service and support to thousands of New Yorkers.