STATE FUNDING CUT TARGETS SHANDS’ SUPPORT FOR DISADVANTAGED PATIENTS
Date: May 29, 2010
GAINESVILLE, Fla.(May 29, 2010)—Gov. Charlie Crist’s decision to cut $9.7 million in state funding for Shands at the University of Florida on Friday will have a ripple effect likely to severely impact the hospital’s ability to care for many of the state’s poorest patients, Shands HealthCare officials say.
"Elimination of this critical revenue source for Shands at UF was totally unexpected," said Tim Goldfarb, CEO of Shands HealthCare. "It is both devastating and perplexing to us given that the governor recommended this funding as part of his budget and approved it in his previous three plans. It is vital to supporting our responsibility to care for Florida’s most vulnerable and neediest residents, particularly those without adequate health insurance coverage."
In addition to the $9.7 million reduction from the state, it is anticipated that Shands at UF will lose at least an additional $12 million and potentially millions more in federal funding through the Medicaid match program for a total impact of at least $21 million in lost funding for the next fiscal year.
This line item in the governor’s budget has been in place for three decades and historically has been funded through a recurring general revenue allocation. As one of the state’s largest charity care providers, these state funds were the only source available for Shands at UF to be eligible for additional federal funds since it is not part of a local taxing district. The ability to use government funding sources to secure additional federal matching dollars through the Low Income Pool and Disproportionate Share programs is essential to sustaining teaching hospital programs and safety net hospitals across the state.
"Shands is among the largest Medicaid and charity care providers in Florida and we have a strong sense of commitment to serve those with little or no insurance. A loss of this magnitude will dramatically impact Shands at UF’s ability to continue to meet the increasing demands placed on us," said Goldfarb.
In addition to caring for the under- and uninsured, state and federal funds support graduate medical education program costs to train physicians and also support unique programs that serve as regional resources for residents in Gainesville and surrounding counties. Among these programs are the Shands Burn Center, a Level 1 Trauma Center and a Regional Perinatal Intensive Care Center.
Shands at UF, one of 14 safety-net hospital systems in the state, plays a critical role in providing access to care for people with limited or no access to healthcare services, and especially to the poor and the uninsured. As a statewide resource, Shands at UF is unique in that it draws patients from all 67 counties in Florida.
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