A health care industry group warns that medical services in New York would be cut and access to treatment would be more limited if Gov. David Paterson’s proposed budget cuts for Medicaid and health care are enacted.

The Hospital Association of New York State issued data Sunday showing that Paterson’s proposal would cut more than $771.5 million from hospitals in the next two years.

The new data offers a breakdown of losses by region, and includes how much individual hospitals would lose. For example, Montefiore Medical Center in New York City would lose more than $7.1 million.

Strong Memorial Hospital in Rochester would lose about $3.1 million and Erie County Medical Center in Buffalo would lose about $1.5 million, according to the association.

Paterson spokesman Jeffrey Gordon says the state Division of Budget is still reviewing the numbers released by the hospital association.

New York City hospitals alone would lose $505 million in the next two years, and $121.7 million before the end of this fiscal year March 31.

Paterson’s proposal would cut reimbursements to hospitals in Medicaid, a double whammy because the federal government matches every Medicaid dollar. So for every dollar the state cuts, hospitals lose two.

New York spends $2,283 per person on Medicaid more than any other state in the country and more than twice the national average of $1,026. Despite the cuts, Medicaid spending would still grow 1 percent, $144 million, from the 2007-2008 fiscal year to the current fiscal year. Paterson’s plan would set total Medicaid spending at $15.3 billion.
  
The midyear cuts are particularly challenging for hospitals because they have already planned their budgets for the year.

(Source: 1010WINS / AP)