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Pataki Touts Healthcare Initiatives in New Budget

By Joyce Kryszak

Buffalo, NY – Governor George Pataki met with Kaleida officials Monday during his swing across state to outline health care reforms included in the new state budget.

Although Pataki wouldn't say if he's seeking re-election, the Governor came to Buffalo with some long over due campaign promises. Pataki says Medicaid relief is on the way.

Local Medicaid costs will be capped with the state expected to pick up the whole tab by 2008. And to control the state's costs, the budget calls for some immediate Medicaid reforms, such as a preferred drug list.

But the reforms go beyond Medicaid. Pataki says a commission of state and local members, will review facilities and make will make recommendations for closing some of them, and improving others.

"We're going to be able to help hospital systems, like Kaleida, invest in more of that technology, so they can deliver services more effectively, better quality, at a lower cost," said Pataki.

Kaleida CEO Bill McGuire says they've made progress toward stemming costs locally. McGuire says the $125 million deficit Kaleida had three years ago has been replaced with a modest profit. But he says they can do better.

"A significant part of the turn-around is due to the closing of 634 beds. That saved us a lot of expense. We could save yet further monies by the actual taking down of the space that those beds occupy. That will take place by the end of this year," said McGuire. "It's possible to save yet further monies by the closing yet another hospital."

But Pataki confirmed that $30 million of federal and state money is assured to keep open the Women's and Children's Hospital. Another $1 billion will be spent by the state to improve other facilities around the state that are deemed viable. Pataki says those improvements and other reforms will also help secure additional federal Medicaid relief.