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DODD, DELAURO SECURE FUNDING FOR GAYLORD HOSPITAL

February 13, 2009

Provision Allows New Beds for Patients to Open, Prevents Job Losses

CONTACT: Bryan DeAngelis (Dodd), 202-224-5372

Adriana Surfas (DeLauro), 202-225-3661

WASHINGTON, D.C. – Senator Chris Dodd (D-CT) and Representative Rosa DeLauro (CT-3) today announced that the economic recovery package passed by the House earlier today includes a technical correction that ensures that Gaylord Hospital in Wallingford will receive the federal funding they were promised for the 36 new beds installed during their recent expansion. This will prevent the loss of 30-50 jobs and $2 million for the hospital, and may help create as many as 100 new jobs. Dodd and DeLauro's provision is a correction of Medicare law that affects approximately 75 percent of the 398 long-term care hospitals around the country, including Gaylord Hospital.

"Gaylord Hospital should not be forced to choose between treating more patients and the funding they receive from the Medicare program," said Dodd. "My provision will ensure that Gaylord Hospital will be able to expand their patient care and start using the new beds they've already installed while continuing to receive critically needed Medicare funding."

"I am so pleased that Gaylord Hospital will finally be able to open its 36 new beds to Medicare and other patients as a result of this provision. Gaylord has long been operating at or beyond full capacity, and these new beds will help improve access to care for some of the most frail and vulnerable patients in our community," said Congresswoman DeLauro.

Gaylord hospital began its expansion in November of 2006 after receiving a certificate of need (CON) from the State of Connecticut. An error in the Medicare, Medicaid and SCHIP Extension Act, which passed in December of 2007, prohibited Gaylord and other similar hospitals from carrying out bed expansions. This meant that Gaylord and other hospitals would be in violation of Medicare law if they used the beds they had already installed, forcing the hospitals to choose between remaining in the program and treating new patients. Dodd and DeLauro's provision clarifies that hospitals such as Gaylord with a CON issued before the initial error can use and be reimbursed for their new beds. Due to this change and the other provisions in the technical corrections package, approximately 75 percent of the long term care hospitals in the country will obtain needed relief.