State to Grant Hospitals Money

BOSTON--The House of Representatives in a budget-busting move last week approved a measure that would grant $50 million to Massachusetts hospitals struggling to remain financially solvent one year after the passage of the state's universal health care law.

As much as $2.4 million of the money could go to Cambridge Hospital, which the commonwealth owes $7.25 million in reimbursed care.

Although the vote to send the money to hospitals was universally praised by health care advocates Wednesday, State House insiders said it was likely that the House would reverse its decision when it reconvenes next week.

The hospital funds were added to a $339 million supplemental spending plan that would keep various state programs and agencies afloat during the final three months of the current fiscal year.

Decried by Leadership

The approval of the $50 million amendment was decried by the House leadership, who warned that the state was short of money and would be forced to raise taxes to fund the proposal.

But advocates of the amendment said that the $50 million--which would help offset the federal government's reduced funding of Medicare payments--was promised to the hospitals last year in return for their support of the state's unprecedented universal health care law.

The move to fund the Medicare reimbursements--which is not done by any other state--was seen as a severe setback to the House leadership. During the past few months, House leaders have been trying to hold the line against increased spending and the possibility of a tax increase.

House Adjourned

Following the 80-64 vote, House Speaker George Keverian '53 (D-Everett) quickly gaveled the session to a halt and adjourned until April 24. The House was scheduled to debate a $52 million amendment that would have helped hospitals fund medical care for the 600,000 Massachusetts residents who currently have no insurance.

The Medicare reimbursement proposal was approved by a coalition of liberal Democrats and maverick Republicans breaking ranks with their party leadership. House Minority Leader Steven D. Pierce (R-Westfield) speculated last week that many of the 21 wayward Republicans would not support the amendment again if the matter were reconsidered.

According to lobbyists for the hospital industry, the state has reneged on a promise to send $139 million to Massachusetts hospitals. Health care advocates said that the number could rise to as high as $214 million by the end of next fiscal year.

Last week, the Cambridge City Council voted to sue the state to recoup its hospital funds unless Gov. Michael S. Dukakis agrees to meet with city officials by May 1.

According to Cambridge City Councillor William H. Walsh, City Manager Robert W. Healy delivered the notice to Dukakis' office last week. Walsh said he expects to hear from the governor's office shortly.

The governor's press office did not return calls Friday.

Walsh also said last week that the House measure was insufficient and that the City Council would move forward with its resolution "unless we receive every nickel and dime by July 1."

Keverian's decision to adjourn until next Monday is an indication that many state programs--whose funding is already dangerously depleted--will run out of money before the State Senate has a chance to approve the supplemental budget.

Programs short of money include worker compensation programs, health insurance funds for state workers and the state Medicaid budget.