BRISTOL PRESS: Officials: Bristol Hospital would fail under Malloy budget

Officials: Bristol Hospital would fail under Malloy budget
Article as Appears in Bristol Press:  Staff Writer, Michael Schroeder

BRISTOL — Bristol Hospital could be a casualty if Gov. Danel Malloy’s proposed 2015-16 budget is passed, hospital President Kurt Barwis told legislators and corporators Wednesday morning.

Under the plan, the hospital wouldn’t be able to make its bond payments, and its operating deficit would grow to unsustainable levels within three years, he said.

These results would be the combined effect of reduced Medicaid and other reimbursements by the state of more $6 million in 2016, the impact of tax changes ($1.5 million) and a loss of the state’s low-cost hospital supplemental payment ($2 million).

Even with a gain in hospital operations — greater efficiencies, cuts in expenses and additional revenues from services — the hospital would expect a $9.8 million net loss in 2016, with the same in future years.

Barwis said the budget plan was unlikely to be approved as-is, but that narrowing the gap will be crucial for the long-term future of the hospital.

Ironically, the hospital is being penalized in funding because it is cost efficient — with a Medicaid daily rate of $3,590 versus $10,143 at John Dempsey Hospital in Farmington, which has the highest rate among non-specialty hospitals in the state. Dempsey is operated by the University of Connecticut’ medical school.

Barwis noted the current reimbursement rate pays on about 64 percent of the costs of treating Medicaid patients. About $5,200 is the average reimbursement for the state’s hospitals, with The Hospital of Central Connecticut, including New Britain General and Bradley Memorial of Southington, coming in at $4,171.

Despite being the third lowest-cost provider for Medicaid in the state (behind two other community hospitals, Johnson and Sharon) and being one of the state’s leaders in terms of patient outcomes and standardized scoring, it seems the administration feels hospitals should take the brunt of the budget cuts, according to Rep. Whit Betts, R-Bristol.

“You heard what the governor’s finance commissioner {Benjamin Barnes] said, ‘You know why robbers rob banks — that’s where the money is.’” Betts said the governor is showing a strong bias against hospitals, and he’s “destroying the progress of our community hospital. It’s an affront — it’s wrong,” Betts also said it would be “a brutal war” to hold onto the current level of hospital support from the state, and “it’s not going to be pretty.” Even Frank Nicastro, the lone Democrat in the greater Bristol delegation, described the plan as “wrong.”

“I don’t like what I’m seeing,” Nicastro said. Bristol Hospital has “a very clean and positive name,” and does not deserve the withdrawal of support.

Both Betts and Nicastro promised to do what they could to restore funding, but emphasized that community involvement and communication would make the real difference in the budget debate.

“If you don’t believe that protests from citizens aren’t heard, they make a difference,” Betts said.

A to-be-determined removal of the tax exemption for nonprofit organizations proposed by the speaker of the state Assembly, Brendan Sharkey, would place an additional financial strain on the city’s leading employer.

Although Wednesday’s gathering turned into a campaign briefing for hospital funding, the meeting was intended to be first of quarterly briefings for corporators and hospital supporters. Dr. Jane Kanowitz, the recently hired medical director of oncology services and the Bristol Hospital Cancer Care Center, shared her goals and what the public could expect.

Her priorities included academic-level treatments that adhere to or exceed national guidelines, very similar to National Cancer Institute-affiliated hospitals, but without the research requirements. She emphasized Bristol’s relationship with Yale-New Haven Hospital and its ability to tap their expertise.

“We want patients who need to get a second opinion to be able to get it here,” Kanowitz said. A tumor panel, composed of 10 hospital-affiliated doctors, has begun to meet weekly to review cases and give feedback on treatment options. “We can give 10 second opinions at one time,” and can include Yale physicians involved through teleconferencing.

Michael Schroeder can be reached at mschroeder@BristolPress.com.