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April
16, 2004
Little
Rock --
The Arkansas Department of Health (ADH) is facing a budget shortfall for the 2005 fiscal year beginning July 1, 2004. The Department has experienced nearly a 20 percent decline in clinical visits over the last three years. The agency’s three biggest reimbursement accounts—Family Planning, Maternity and Immunizations—are spending more money than they are taking in. Consequently, the deficit for FY05 is about $5,350,000.
Evidence suggests that several different factors have contributed to the decline in clinic activity and subsequent budget deficit:
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During the 2001 budgeting process, the Department eliminated the child health program and stopped providing Early Periodic Screening, Diagnosis and Testing (EPSDT or well-child checkups).
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It is thought that because of the ArKids First Program, children now have access to primary care physicians, and more private physicians are now providing immunizations.
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It is believed that private physicians are seeing more Medicaid patients (traditionally, many of these clients were part of the ADH client base).
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The Department has difficulty recruiting and retaining Registered Nurses and Nurse Practitioners in some counties, because ADH salaries are not competitive with the private sector. These colleagues are needed to staff our clinics.
Dr. Fay Boozman, director, said, “Some of these factors (i.e., ArKids) are good for Arkansans, but hard on the Health Department budget. We are forced to do what every Arkansas family has to do if they are spending more money than they are making. We have to balance the ADH checkbook.”
The Department will address the shortfall by eliminating 123 positions. Sixty-nine of these are vacant and 38 are currently filled. The termination date for these 38 colleagues will be May 17, 2004. Sixteen colleagues have been reassigned. In addition, five people will be reduced from full-time to part-time employment on May 17. Operational expenses were also reduced.
Boozman said, “Cutting a budget is always difficult, but laying off our colleagues is especially painful. We know this is very hard on them and their families. We hate to do this, but we simply have no other choice.”
One-on-one media interviews with Dr. Fay Boozman will be available beginning the afternoon of Friday, April 16 to discuss the budget deficit. Interviews are on a first-come, first serve basis. For more information, contact Ann Wright, External Communications Director, at (501) 661-2474.
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