Governor Mike Huckabee an-
nounced November 14 that the state
budget for the remainder of fiscal
year 2002 will be cut by $142 million.
The amount is substantially more
than the $100 million reduction orig-
inally expected and represents the
largest mid-year state budget adjust-
ment in history. Cuts for state fiscal
year 2003, the second year of the
biennial budget period, which begins
July 1, 2002, will total $161 million
less than approved by the Arkansas
General Assembly during the legisla-
tive session that ended last April. The
cuts are a result of a general econom-
ic downturn affecting most states.
Through October 31, state general
revenues for the year beginning July
1, 2001 were $12.4 million less than
collected through the same period
last year and $34 million under pro-
jections for this year.
The Arkansas Medicaid programs will
lose more than $50 million during the
remainder of state fiscal year 2002 as
part of the state spending reduction.
Medicaid director Ray Hanley said most
of the 475,000 Arkansans who are eligi-
ble for and use Medicaid benefits will be
affected to some degree.
The largest part of the savings-
between $19 million and $20 million-
will come from elimination of the state's
medically needy program that covers
healthcare costs for about 33,000 low
income people who wouldn't normally
qualify for Medicaid, but who must have
care related to catastrophic illnesses.
Other significant cuts will be made in
payments for prescription drugs and
pharmacy costs, day treatment and
therapy services for developmentally
delayed children, rehabilitation services
for the mentally ill and changes in the
way patients are evaluated for nursing
home care.
Few of the spending reductions
should directly affect payments to hos-
pitals, though the indirect impact could
weigh heavily. In addition to loss of pay-
ments for services to those who will no
longer have benefits under the medical-
ly needy program, Medicaid will cease
paying Medicare/Medicaid crossover
claims for patients dually-eligible for
both programs at more than would have
been paid had the dual-eligible patient
been a Medicaid patient only. Several
years ago, the state followed a "pay no
more than Medicaid" policy, but that
was changed to pay at Medicare rates
when more money was available.
Medicaid may also seek savings in
the mental health arena by putting out
to bid inpatient psychiatric care. And a
gate-keeping system may be established
for children's outpatient care. These
programs have been growing at double-
digit rates, according to Hanley. Most of
the announced cuts will take effect next
spring. Some require approval from the
federal Centers for Medicare & Medic-
aid Services before changes can be
implemented.
Russell D. Harrington, Jr., FACHE,
president of Baptist Health in Little Rock,
was recognized with the Arkansas Hospi-
tal Association's A. Allen Weintraub
Memorial Award during the AHA's annu-
al meeting October 8 in Little Rock.
The award, named for the late admin-
istrator of St. Vincent Infirmary Medical
Center (now St. Vincent Health System)
in Little Rock, is the highest honor
bestowed on an individual by the AHA.
Harrington was selected for the award by
the AHA board of directors in recogni-
tion of his dedicated service to hospitals
and to medical care in Arkansas.
President of Baptist Health since 1984,
Harrington oversees the operations of
five hospitals, a retirement community,
skilled care facility, residential care facili-
ty, and medical service organization. He
began his healthcare career in 1971 as
director of outpatient and emergency ser-
vices at UAMS, and continued as assis-
tant administrator of Baptist Health Med-
ical Center, executive director of Baptist
Memorial Hospital in Kansas City,
administrator of Baptist Health Medical
Center, and associate executive director
of Baptist Medical System, now Baptist
Health.
Harrington's accomplishments in-
clude serving as chairman of the AHA
board of directors and as Arkansas' dele-
gate to the American Hospital Associa-
tion's Regional Policy Board; past presi-
dent of the Arkansas Hospital Adminis-
trators Forum and the Metropolitan Hos-
pital District; a Fellow in the American
College of Healthcare Executives; a for-
mer commissioner of the Arkansas
Health Services Commission; a board
member of Parkway Village, Inc., Baptist
Health Foundation, Greater Little Rock
Chamber of Commerce, and Fifty for the
Future; and past board member of VHA
Inc. and the Governor's Arkansas State
Quality Award Program.
He has contributed many volunteer
hours to the greater Little Rock commu-
nity, serving as a board member of the
Pulaski County United Way, Central
Arkansas Radiation Therapy Institute,
and Arkansans for Drug Free Youth. He
was named Arkansas' Philanthropic Per-
son 2000 by the Muscular Dystrophy
Association.