Rep. Rose pushes for more hospital funding
In recent years Milford Hospital has closed its maternity ward, cut staff and consolidated programs in the face of financial challenges. This week President and CEO Joseph Pelaccia warned that the hospital cannot afford additional state budget reductions.
“We simply cannot continue to absorb these reductions in funding,” he said in a written statement. “Continued cuts will have a negative impact on our hospital and our community.”
State Rep. Kim Rose (D-Milford) sent a letter to Governor Dannel Malloy last week urging him to reinstate payments to hospitals.
At the beginning of the month, the Malloy administration announced the suspension of about $140 million in payments to Connecticut's hospitals due to a decrease in tax revenues, according to a press release from Rose.
"Since the first round of potential cuts was announced last September, I added my voice for the fulfillment of the state's obligations to what had been already approved by the legislature," Rose said. "The health care services offered to our residents by our area hospitals are critical to our communities."
She said that over the past eight years, Milford Hospital has been experiencing significant financial losses, that operating expenses have been cut about $10 million from fiscal years 2008 to 2015.
“Milford Hospital stands as the city’s largest employer and contributes over $168 million to the local economy,” Rose said.
She said further cuts will have a devastating impact on the hospital and the community.
Pelaccia echoed her concerns.
“To date, Milford Hospital has only received a small portion of what is owed to us despite the legislators’ efforts to restore funds to hospitals during the December 2015 special session,” Pelaccia said. “In addition, we received notice on March 2, 2016 that it is unlikely we will receive any further payments. As a result, Milford Hospital is faced with an unplanned and unbudgeted loss of nearly $1.3 million in promised reimbursements.”
Pelaccia further stated, “Since 2008, reduced reimbursement, changes in payer mix and the hospital provider tax instituted in 2012, have created significant fiscal challenges. As a result, we’ve terminated our maternity service, cut our staff by 116 full time equivalents and consolidated other programs and services. We have done this while continuing to provide the safe, high quality healthcare our residents need and deserve.”
Residents who would like to advocate for the hospital can go to: