MCG layoffs a potential side effect

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Cuts in Medicaid payments could trigger layoffs at Medical College of Georgia Hospital and Clinics as the state tries to fill a budget hole.

The board of the Georgia Department of Community Health meets today, and the Medicaid budget is on the agenda.

Gov. Sonny Perdue has asked state agencies to prepare plans for cuts of 6 percent, 8 percent and 10 percent to meet a budget shortfall of at least $1.6 billion and perhaps as much as $2.2 billion, said Don Snell, the CEO of MCG Health Inc., which runs the school's health system.

Officials of MCG Health had hoped Medicaid would look at cutting back on benefits, but now it might be a 5 percent payment cut to providers. For MCG Health, that would mean nearly $14 million less in payments and supplemental payments, Chief Financial Officer Dennis Roemer said.

And that would mean fewer personnel, Mr. Snell said.

"If we have to reduce those kinds of dollars, it's going to be pretty draconian," he said. "It would be a large personnel reduction. I would try to keep it away from direct patient care areas, because if they affect the payment rates, we would still see the patients."

The obvious targets would be in administration and support services, Mr. Snell said.

The health system and the school are hoping to avoid a reduction in the direct appropriation to the health system that would result in a cut in support for the school's residency training programs. At 6 percent, that would be $2.1 million. MCG President Daniel W. Rahn said that would be on top of a 6 percent cut of about $9.5 million and would actually be a bigger hit for MCG than others in the University System of Georgia are experiencing.

"The assumption of an additional $2 million reduction at a minimum would be extremely problematic on the campus side," Dr. Rahn said.

The school and health system had been at odds over funding for residency training earlier this year. The two sides compromised, with the Board of Regents kicking in an additional $2 million to help settle the matter. Having gone through that process, and with the School of Medicine expanding to a branch campus in Athens and satellite campuses in Savannah and Albany, Mr. Snell said he hopes the regents will forgo that part of the cut.

"With the state's priority of training more physicians and a priority on the medical education initiative, that there ought to be a cut, it doesn't make sense," he said.

Reach Tom Corwin at (706) 823-3213 or tom.corwin@augustachronicle.com.

WHAT'S NEXT?

The board of the Department of Community Health meets at 10:30 a.m. today in Atlanta to discuss budget reductions that hospital leaders fear could mean cuts to Medicaid reimbursement.

Comments (38) Add comment
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jackfruitpaper833
41
Points
jackfruitpaper833 08/28/08 - 06:47 am
0
0
Ya'll voted for sonny.

Ya'll voted for sonny.

john
886
Points
john 08/28/08 - 07:01 am
0
0
mcg hi should start in HR.

mcg hi should start in HR. They are sorry anyway. Anyone see the article in the metro spirit about the mold problem?

createyourfuture
68
Points
createyourfuture 08/28/08 - 07:09 am
0
0
When the economy is bad, the

When the economy is bad, the state takes in less money. Would y'all like to raise taxes?? Because that is the choice.

paulwheeler
122
Points
paulwheeler 08/28/08 - 07:39 am
0
0
Maybe Mr. Rahn needs to

Maybe Mr. Rahn needs to create another foundation or two and buy some more real estate.

i.b.e.w..electric
0
Points
i.b.e.w..electric 08/28/08 - 07:39 am
0
0
sonny wants to cut everything

sonny wants to cut everything but his own perks,like jack said ,yall voted for him.

Riverman1
78435
Points
Riverman1 08/28/08 - 07:41 am
0
0
Some time to be expanding to

Some time to be expanding to Athens. Heh

tiredofit
0
Points
tiredofit 08/28/08 - 08:01 am
0
0
This is just a hint of what

This is just a hint of what would happen with a government run program. The sad part is that the patients on Medicaid already have access problems, and it will only get worse. There are so many areas MCG could cut without affecting patient care. A lot of ineffective administrators to start. They have so much potential to improve efficiency and bring paying customers but don't. What other industry does someone else get to tell you how much you get paid for your services? Not the lawyers, accountants, or even nail technicians.

christian134
1
Points
christian134 08/28/08 - 08:08 am
0
0
Many of the administrators

Many of the administrators have administrators to help the sub-administrators and so on and so on...Unfortunately when it comes to chopping off heads the employees on the low end of the totem pole usually end up on the block first...

whostellingusthetruth
0
Points
whostellingusthetruth 08/28/08 - 08:09 am
0
0
What's wrong with cutting

What's wrong with cutting jobs where people don't do any work, but draw a check---about time, go sunny!!!

mojo
0
Points
mojo 08/28/08 - 08:25 am
0
0
Interesting how other

Interesting how other universities are trimming budgets but maintaing people and service - MCG's answer is a threat to layoff people - politics as usual.

double_standard
166
Points
double_standard 08/28/08 - 08:26 am
0
0
Where's Charles Walker when

Where's Charles Walker when you need him? No administrators will be cut, they will probally get reassigned. The ones getting cut will be someone one making 7.50 a hour folding sheets or pushing a broom.

whostellingusthetruth
0
Points
whostellingusthetruth 08/28/08 - 08:31 am
0
0
Guess those broom pushers

Guess those broom pushers should have studied a little harder and gotten a better education, huh, ds?

aaa
2
Points
aaa 08/28/08 - 08:35 am
0
0
MCGand MCGHI are both

MCGand MCGHI are both top-heavy with layer upon layer of administrative folks. Start the thinning process there - stop threatening the little guys' jobs. Let's see . . . Rahn's Foundation is already 2 million dollars in debt to SunTrust at it's inception . . . money can't come from there. Sonny says "No Way" . . . money can't come from there. Looks like they're gonna have to thin out the ranks of the administration.

augustalawyer
0
Points
augustalawyer 08/28/08 - 08:36 am
0
0
Perhaps George Snell could

Perhaps George Snell could come off some of his salary, which is suppose to be close to 1 million, to keep some of the other people on the payroll.

marien
28
Points
marien 08/28/08 - 08:39 am
0
0
How do you know that they are

How do you know that they are not studying hard this could be the job to help them pave their way to a better one, some people do that you know. Its call MAKING A LIVING..........

justthefacts
20027
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justthefacts 08/28/08 - 08:54 am
0
0
Good thing about lean times.

Good thing about lean times. You can cut the fat.

hobo
0
Points
hobo 08/28/08 - 09:13 am
0
0
I think John got fired MCGHI

I think John got fired MCGHI has some great people including the people in HR They are lean and mean

keraknightwalker
0
Points
keraknightwalker 08/28/08 - 09:14 am
0
0
They always cut maintenance

They always cut maintenance and house keeping first.

soldout
1280
Points
soldout 08/28/08 - 09:24 am
0
0
Less medical care can be

Less medical care can be good. The more we have in this country the further we fall behind in length of life compared to other countries with less health care costs. We are over-medicated and that has become the thrid leading cause of death according to some doctors. There are simple, almost free answers to good health but you won't hear about them on TV or from anyone making money on you being sick. Learn about EFT, NAET, Dr. David Williams, drink more water, walk a little, cut off the TV, get more sunshine and drop the sun screen and you will be amazed. If everyone did that 75% of doctors would be without work. God never intended for you to spend so much time focused on your health.

jackfruitpaper833
41
Points
jackfruitpaper833 08/28/08 - 10:05 am
0
0
LOL it's Don Snell not

LOL it's Don Snell not George, MCGHI is a mess has been and will be until they merge back.

john
886
Points
john 08/28/08 - 10:15 am
0
0
nope, dont work there, very

nope, dont work there, very close to someone who does, still in good standing. I have worked for large organizations and the mistakes that the HI HR dept make and and the attitude they give employees is unacceptable. There are great employees and bad ones everywhere, but there seem to either be a cluster of bad ones in HR or its a management strategy to be fubar.

hobo
0
Points
hobo 08/28/08 - 11:20 am
0
0
John you don't know what your

John you don't know what your are talking about and you friend probably deserves to be fired also

triscuit
2790
Points
triscuit 08/28/08 - 11:49 am
0
0
Start with firing Don Snell.

Start with firing Don Snell. His salary alone would offset most of the shortfall. And he's singlehandedly done more to lower morale there for years than anyone else. I say start with administrators...but it's usually the little minions that get the axe...

jackfruitpaper833
41
Points
jackfruitpaper833 08/28/08 - 11:59 am
0
0
I say fire him as well, he

I say fire him as well, he has messed MCG up, it appears all is well when he has press conferences and news releases, but underneath it's a mess. Get rid of some of those CIOs holding positions and doing nothing, get rid of some of those Directors of this, and Directors of that doing nothing. There are a lot of people burden down at MCGHI if it wasn't for some having been there for years and years and are just waiting to retire surely they would be gone by now. Pressing on in times like these.

iletuknow
7
Points
iletuknow 08/28/08 - 12:05 pm
0
0
Making people well is a

Making people well is a sideline at MCG. The main racket is sucking as much money as possible from the taxpayers using the sick and poor as a disguise.

Fogcutter
0
Points
Fogcutter 08/28/08 - 12:39 pm
0
0
Budget cuts at MCGHI again?

Budget cuts at MCGHI again? Naw!!!! They been cutting budgets every year for the past 8 years. But in spite of all those budget cuts, Don Snell makes more money for Don each and every year. As long as Don makes his money, he doesn't give a flip if ever patient dies and if the building fell in.

Fogcutter
0
Points
Fogcutter 08/28/08 - 12:43 pm
0
0
If MCG wants to raise some

If MCG wants to raise some money to cover budget cuts they could start by selling the multi-million dollar mansion, and cutting out the 6 figure annual maintenance budget provided to upkeep the house and grounds, that Dan Rahn goes home to in his MCG furnished vehicle, when he isnt busy sucking up to Clay Boardman to get a good T time at the Augusta National.

jack
10
Points
jack 08/28/08 - 02:00 pm
0
0
IBEW, how do you kno Purdue

IBEW, how do you kno Purdue hasn't cut some of his "perks". You have an insider in Atlanta? (I seriously doubt it).

jack
10
Points
jack 08/28/08 - 02:05 pm
0
0
Raise taxes Sonny ! Then

Raise taxes Sonny ! Then let's hear the likes of IBEW whine.

fortunekiller
0
Points
fortunekiller 08/28/08 - 02:51 pm
0
0
JOHN: You don't work at MCG

JOHN: You don't work at MCG yet are ready to bash an HR department you only know of through someone else? That's brilliant! Do you always judge people based on someone else's opinion because you're too ignorant to form your own?

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