William M. Mooney, Jr.  President of the WCA, who chaired the meeting entitled, The Healthcare Provider Contract Crisis—What’s Next? noted that the escalating cost of healthcare was of concern to businesses both large and small, a factor that gained increased attention on September 25 when Pinnacle hospital contracts with United Healthcare were terminated. “Immediately after this event, our members correctly noted that the whole issue of group healthcare insurance had major implications for them and their employees, prompting this special forum,” Mooney explained.

Joining  Mooney in the discussion were: Jim Foy, President/CEO of Riverside Healthcare System; Edward MacDonald, Chairman of the Board, Hudson Valley Hospital Center; John Spicer, President/CEO of Sound Shore Health System, Joseph Pisani, Chief Administrative Officer, Westchester Medical Center as well as Helen Turchioe, Executive Director, Pinnacle Healthcare, Inc. and Arthur Weintraub, President of the Northern Metropolitan Hospital Association.

Citing independent research reports and distributing charts to the audience to support their argument, the panelists showed how the financial situation of New York hospitals has steadily worsened over the past several years. Arthur Weintraub noted the glaring comparison between the sharp decline in net income of New York hospitals over the last six years compared to the insurance industry’s steeply climbing profits of $762 million. “This is a serious problem threatening the viability of hospitals and their continued ability to deliver quality healthcare,” Weintraub cautioned, adding, “The rates paid by some insurers do not cover hospital costs, and the outlook isn’t very encouraging.”

Foy of Riverside Health System said that “the bad news is that the rate of inflation is going to accelerate over the next five years, triggered by the aging of the baby boomer population who will increasingly need health care services and the costs of technology and drugs.”

Spicer of Sound Shore Health System expressed concern about the impact that swelling numbers of uninsured individuals will have on the healthcare system. “Increasing numbers of uninsured people receive treatment in our emergency rooms for which we receive little payment while we struggle with low reimbursement rates from other payors. Caring for the uninsured is an important issue which must be addressed and has an effect on business as well as hospitals,” Spicer said.

Turchioe of Pinnacle Healthcare also observed that, “While the HMOs distribute their profits to shareholders, not-for-profit hospitals re-invest in new equipment and technology, staff and in programs designed to lower healthcare costs such as those for diabetes and asthma.”  “Education is key,” she added.

Pisani explained that Westchester Medical Center’s Trauma and Burn Center provides a valuable service to the entire Hudson Valley Region. “But the costs for staffing this operation with specialists who are on standby status are not sufficiently covered.”

The panelists stressed the importance of hospitals in the economic life of Westchester County. “Hospitals are essential to the business community because we play an important role in keeping employees healthy,” Spicer of Sound Shore Health System remarked. He noted that the hospitals in the New York area contribute significantly to the economy, employing 30,000 individuals and contributing $1.7 billion annually to the economy. 

MacDonald of Hudson Valley Hospital Center observed that termination of the contract between Pinnacle member hospitals and United Healthcare was a catalyst for the forum. He noted that “WCA programs like this one are an important way of bringing complex healthcare issues to the attention of the business community.”

The question and answer session that followed the presentation was “one of the most spirited we have ever witnessed and we had to extend it by 45 minutes,” Mooney remarked. “It proved that this is indeed a very hot topic for our members.” Mooney said that the forum was by no means the last word on the subject. “We plan on conducting future forums on related topics.  We will do all we can to make sure that healthcare continues to get the focus it needs as a critical component to the county’s economic infrastructure that affects us all”