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Proposed MTA Payroll Tax Has Major Impact on Orange Regional Medical Center

April 30, 2009

(Middletown, NY) – Orange Regional Medical Center is projecting that it will have to pay $325,000 annually to adhere to a payroll tax proposed by New York State to benefit the Metropolitan Transit Authority. Orange Regional joins hundreds of Orange County businesses who oppose the tax, which is seen as a major financial obstacle on businesses striving to succeed in a tremendously challenging economy.

The State Senate is proposing that businesses be assessed 25 cents per every one hundred dollars of payroll to address the MTA’s $1.2 billion debt. Orange Regional Medical Center President and CEO Scott Batulis says, “Hospitals in New York State are constantly struggling to maintain positive finances. As a not-for-profit organization, we reinvest any profit back into our facilities, technology, and staffing for the good of our community. We feel this tax is extremely unfair and the MTA’s budget should not be balanced on the backs of our patients.”

In addition to the payroll tax, the MTA will raise fairs and enact service cuts on subways, buses, and commuter rail. “The MTA payroll tax shifts precious resources from hospital programs that support Hudson Valley families,” says Mitch Amado, Orange Regional’s CFO. “On $130,000,000 of payroll, the tax would cost us $325,000 annually. It amounts to an unfunded mandate on your local hospital.

Orange County residents are urged to contact State Senators John J. Bonacic, 845-344 3311 or Bill Larkin, 845-567-1270 and request rejection of the MTA payroll tax proposal. For additional information about Orange Regional Medical Center, please call the Orange Regional Health Connection at 1-888-321-ORMC (6762) or visit www.ormc.org.

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