Hospitals

MetroHealth’s county subsidy likely to be cut 10% next year

Cuyahoga County officials are likely to cut the county's subsidy to the taxpayer-supported MetroHealth System by about 10 percent next year, according to an internal memo sent to the health system's employees.

Cuyahoga County officials are likely to cut the county’s subsidy to the taxpayer-supported MetroHealth System by about 10 percent next year, according to an internal memo sent to the health system’s employees.

The primary reason for the subsidy cut to $36.1 million from $40 million in the county’s 2011 budget is a reduction in property tax collections. Property values are down, so the Health and Human Services levies — which fund MetroHealth’s subsidy — are falling along with those values, County Administrator Jim McCafferty said.

McCafferty said the subsidy reduction shouldn’t affect MetroHealth’s budget much because an increase in county employees enrolling in MetroHealth plans is likely to make up for the shortfall, at least in part. The county is projecting to spend $9 million next year on employee health plans with MetroHealth, up from $7 million this year, he said.

“The word is out that Metro gives you good care, and it’s a good plan, so more employees are taking advantage of it,” McCafferty said.

However, MetroHealth Board Chairman Ronald Fountain said “some” service cuts “might be considered” in response to the declining subsidy, according to the internal memo. The memo didn’t provide further detail on what cuts could be considered, and a MetroHealth spokeswoman said it’s too soon to tell.

Further, the $4 million represented in the subsidy cut is a pittance when viewed in relation to MetroHealth’s most recent annual revenues. The cut represents less than 1 percent of the health system’s 2009 revenues of $710 million.

County executives called the subsidy reduction “temporary,” according to the memo, which the MetroHealth spokeswoman forwarded at the request of MedCity News.

The Cuyahoga County Commissioners are likely to pass the county’s 2011 budget Thursday, McCafferty said.

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