New York Governor Andrew Cuomo’s effort to enact a $15 minimum wage could push the state’s home healthcare agencies to the brink of bankruptcy, according to a new report by Crain’s New York Business. Cuomo’s endless pandering for the big union bosses could end up costing New Yorkers their quality healthcare. The most detrimental impact of Cuomo’s $15 minimum wage will be increased costs and reduced quality of care for the elderly and disabled, according to Crain’s:
Gov. Andrew Cuomo’s plan to gradually raise New York’s minimum wage could push some home health care agencies into bankruptcy, the providers say. The increase, they argue, would undermine efforts to reduce medical costs for the elderly and disabled by keeping them in their own apartments and out of nursing homes.
According to a 2103 survey conducted by the Home Care Association of New York State, 70% of home healthcare agencies had reported operating losses. Cuomo’s $15 minimum wage will only accelerate the home healthcare industry’s demise due to increase labor costs:
About 70% of home health agencies reported operating losses for 2013 in a survey by the Home Care Association of New York State. The industry group warned that the minimum-wage hike would result in bankruptcies and reduced services if the state budget doesn’t cover the higher labor costs.
The cost of a $15 minimum wage will come with a staggering $2.19 billion price tag to the home healthcare industry. If New York doesn’t pick up the tab, consumers and workers will be the ones to pay the price:
The group estimated that providers would face $1.1 billion in increased costs in the first two years, and $2.19 billion once the minimum wage reaches $15 statewide, in 2021.
Governor Cuomo has once again proven his dedication to the “Fight for $15” by choosing to support the SEIU over the workers and taxpayers of New York, putting nearly half a million New York jobs at risk. The home healthcare industry is not the only victim of Cuomo’s frantic push for the “Fight for $15,” the devastating minimum wage has also threatened schools and homeowners.