Proposed state health-care cuts could cost billions, opponents say

Casey Newton -
Feb. 24, 2010 12:53 PM
The Arizona Republic .

An estimated $2.7 billion and 42,000 jobs will leave the state if the Legislature approves proposed cuts to health care, according to an analysis by economists at Arizona State University.

The Arizona Hospital and Healthcare Association hired the economists to evaluate Gov. Jan Brewer's budget proposal. The proposal, which could be voted on as early as next week, includes deep cuts for AHCCCS, reduced support for rural hospitals, the elimination of KidsCare and cuts to a program that brings new doctors to the state.


The governor's proposal would result in $1.15 billion in cuts directly to hospitals, according to John Rivers, president of the hospital association. Combined with a loss in federal matching funds, the loss to Arizona is an estimated $2.7 billion.

Rivers urged alternatives to the steep cuts, saying they would cripple Arizona for years to come.

"The cure is worse than the disease," said Rivers, who said tax increases would be necessary to close the budget gap.

The health care industry is one of the few job sectors in Arizona that is currently growing; it added 6,400 jobs last year.

Industry representatives argue that Brewer's proposed budget will increase costs for people who have health care as hospitals look to offset the costs of treating more Arizonans in emergency rooms.

http://www.azcentral.com/news/election/ ... 24-ON.html