County Legislators Restore Funding to Hudson River HealthCare

The Westchester County Board of Legislators, led by a democratic majority, restored funding to Peekskill’s and other county health centers in a vote on the county's $1.7 billion 2012 budget yesterday. Facing a $114 million budget gap, Republican County Executive Rob Astorino’s proposed budget had included a three percent cut to the county Health Department budget, which would have ended the county’s subsidies to the health centers.

Astornio can still veto the legislators’ decision to restore funding, but the democratic super-majority has the power to override his vetoes.

Last year the county provided a $675,678 subsidy to Hudson River HealthCare, which operates with about a $50 million budget, according to county documents.

The other centers who received funds are the Mount Vernon Neighborhood Health Center, and the Open Door Family Medical Center in Port Chester. If the county were to end contracts with these centers it would save $1.9 million in the county budget.

But HRHC’s CEO Ann Rolan said that if the county ended its contract with the center it would force them to reduce the volume and breadth of services they provide. 

The HRHC serves about 26,000 people in Westchester County. It also has offices and patients in Yonkers, Dutchess, Orange, Rockland, Suffolk and Ulster counties. No other county has provided HRHC with subsidies other than Orange, which provided the center with $300,000 last year.

Astorino’s argument for cutting the subsidies was that the county is not required to subsidize health centers and he pointed out that the centers operate with surplus.

“The health center operates with a surplus so, given that the county is faces with closing a $114 million budget gap that requires laying off 210 employees and cutting services, the administration could not justify continuing to give these outside organizations subsidies, which it is under no obligation to provide,” Astorino said.

County administration documents show that HRHC operated with a $1.2 million surplus in 2010, and would have had surpluses even without the county’s $675,678 subsidy. Astornio also points out that the centers’ executive directors all make between $250,000 to $460,000.

Nolan says they need to operate at a surplus in order to meet federal guidelines for financial stability.

“Financial stability is a federal requirement and ensures that HRHCare can continue to operate in the face of current and future payment delays or changes in reimbursement," she said. 

"That $1 million is barely sufficient to meet one payroll cycle for an organization of 620 employees.  But more importantly, this argument distracts from the fact that these funds have been used by HRHCare to provide county mandated services addressing the public’s health. HRHCare and the community health center model have demonstrated in countless studies their cost effectiveness and quality of care and are the best choice for providing community directed public health initiatives.”

County documents show that Mount Vernon Neighborhood Health Centers and Open Door Family Medical Centers, which serves Ossining, Port Chester, Sleepy Hollow and Mount Kisco, also operate at a surplus.

Mayor Mary Foster sent Testa a letter against the cuts, asking him to fight the cuts proposed to Hudson River.

Testa said he supports the issues and concerns facing his district, including HRHC.

 “The decision is not a reflection on the good and important work of these organizations it is simply a recognition that the county can no longer afford to give them a $1.9 million annual subsidy at a time when the county is struggling to balance its own budget,” Astorino said of the three health centers.

The county provides free health services, which are mandated, including free screening, treatment and case management of sexually transmitted diseases and infectious Tuberculosis for cases and contacts to infections cases.

The Federal Ryan White funds for HIV/AIDS, which provides $154,500 to HRHC and comes through the county Health Department, will not be affected by the cuts.

For now the health centers are no longer facing county cuts to funding. Most likely if Astorino vetoes the legislators’ decision to restore the funds, the democratic super-majority will then override his veto, protecting Hudson River Health Care from budget cuts in 2012.