New York Gov. David Paterson’s proposal to cut $1 billion from health care funding in the state could send hospitals to private insurers with hat in hand.

Daniel Sisto

“The Governor’s proposal to cut another $1 billion in health care funding is not public policy; it is anti-public policy,” said Daniel Sisto, president of the Healthcare Association of New York State (HANYS), in a statement.

The organization’s membership, including the state’s 550 non-profit and public hospitals, nursing homes, home care agencies and other health care organizations, will have no choice but seek alternative measures to make up the lost revenue if Paterson’s budget cuts are approved, HANYS said.

“The governor’s actions compel our members to choose between two unfortunate courses of action: Seek higher payments from private insurance companies to make up for government underpayments, and/or continue the growing pattern of service reductions and job layoffs that are the legacy of the last five budget-cutting actions that have occurred in just the last two years,” Sisto said.

He said the governor’s plan will hurt businesses in the state. “The governor’s anti-economic policy will deepen the impact of the recession by driving up employer insurance costs and causing more private sector and health care sector job losses,” he said.

He called on Paterson to “preserve the health care safety net that protects the growing ranks of uninsured and unemployed,” calling Paterson’s stated desire to improve the state’s economy and reform the state’s health care system “rhetoric.”