March 20, 2007

Illinois Treasurer Alexi Giannoulias spoke today in support of a bill that would force the state to budget the full amount owed to healthcare providers in the fiscal year that they are due.

“House Bill 3397 is a responsible measure that would force the state to end the budget shell game and pay its bills when they are due,” said Giannoulias, who discussed the bill with State Comptroller Dan Hynes, who helped draft the legislation.

“For far too long we have balanced the budget on the backs of healthcare providers with long payment delays,” Giannoulias said. “The first step in solving the healthcare crisis is to meet our obligations.”

Under Illinois law, the state must balance its budget each year. But the State Finance Act allows the state to delay paying bills owed to healthcare providers in the fiscal year that the liability was incurred. As a result, the state has routinely put off making these payments until the next fiscal year to balance its budget. HB 3397 would eliminate that exception.

“We need to act more responsibly to meet our obligations and we have to pay our bills when they come due,” Giannoulias said. “Failing to do so will ultimately threaten access to healthcare and limit the number of patients that doctors will see.”

In fiscal year 2006, the state deferred almost $2.4 billion in unpaid liabilities, down from almost $3 billion in unpaid liabilities the year before. With such a large liability, the healthcare providers have been forced to finance the state’s debt.

“Doctors and pharmacists should be treating patients and working as our allies to solve the healthcare crisis,” Giannoulias said. “Instead they’re worried about their own financial situation because the state has placed an unfair burden on them. Healthcare workers need to know that they will get paid on time so that they can focus their attention on patients’ needs.”