The newest goal of Syracuse hospitals: reviving the city’s debilitating financial budget.

Officials of both Crouse and Upstate University hospitals agreed to help the city of Syracuse save $600,000 during the next year by providing reduced health care costs for the city’s employees. The agreement between Syracuse and its two largest hospitals was announced by Mayor Stephanie Miner’s office on March 25.

“I am very pleased that two of our leading hospitals, Crouse and University, have demonstrated

their willingness to be strong community partners during challenging fiscal times,” Miner said in a news release. “In addition to our service agreements with SU and Crouse, this is another way we are working with our large non-profit tax exempt institutions in Syracuse to identify new ways for them to help us fund vital services.”

More than half of city properties, about 56.3 percent, are exempt from taxation, according to the city’s 2012-13 budget.

Miner said in the release Syracuse officials need to consider new solutions for funding the budget because so much of the city is tax-exempt.

“The City of Syracuse is in dire financial condition. We [are] looking to work with all of our partners, including our non-profit healthcare providers, to work towards righting our fiscal ship,” said Alexander Marion, the mayor’s press secretary, in an email. “Strong teaching and research non-profit medical institutions are integral into making Syracuse a great city. We will only see our hospitals and other large non-profits grow and expand when we have a vital and vibrant city that is able to offer them a higher quality of service.”

Health care serves as one of the city’s largest expenditures, according to the budget report. In the budget, it was predicted the city would spend $44.1 million on health care from 2012-13, with possible future increases.

The contribution by the two hospitals allows the city’s budget to support vital city services, according to the news release.

“We are delighted that we were able to find an avenue to help take a significant cost off the City’s plate,” said Darryl Geddes, University Hospital’s director of public and media relations, in an email. “Great cities need great partners and this holds the promise of a great partnership for years to come.”

This is Crouse Hospital’s second contribution to the city of Syracuse in recent years, as hospital officials also signed a four-year agreement with the city earlier to pay the city $50,000 a year, according to the release. Crouse is the second tax-exempt institution in Syracuse to voluntarily contribute to the city’s tax base, after Syracuse University agreed in 2011 to pay the city $500,000 a year for five years.

The deal between Syracuse and the two hospitals was facilitated by POMCO Group, the health care provider for city employees. City officials also plan to extend the city’s contract with the health care provider for another year, according to the release.

POMCO’s role in the reduction was to identify every possible way to decrease health costs, said Robert Pomfrey, POMCO Group president and CEO, in the release.

Said Pomfrey in the release: “Challenging times require additional efforts from all parties involved, and as part of our partnership with the City, we gladly encouraged the utilization of collective efforts to achieve this shared goal.”

Published on April 3, 2013 at 12:11 am

Contact Alfred: alng@syr.edu

@alfredwkng