ELLENVILLE – Ellenville Regional Hospital (ERH) will likely have to absorb an approximately $250,000 budget cut this year, according to ERH CEO Steve Kelley. This estimate was produced by the Health Association of NY State, the organization that represents and advocates for hospitals throughout New York. While the potential cut is not insignificant — amounting to less than two percent of the hospital's budget — Kelley feels sure that ERH can offset this cut without having to resort to drastic action.

"I don't think we'll have to lay anyone off," Kelley says. "I really wouldn't want to do that if I can avoid it."

Instead, Kelley feels that ERH is actually poised to experience growth this year, and that this growth will likely be enough to offset any potential loss.

"Unlike other hospitals in the area, many of which are experiencing a decrease in demand, we're actually in a position in which demand is increasing," Kelley says.

In addition, Kelley says that ERH offers a number of services that could see increases in overall participation, without having to incur any additional expenses. Things like X-rays, according to Kelley, have a fixed cost, in that you have to purchase the equipment and then provide staff; but that to increase the number of X-rays produced doesn't really affect overall expenses very much. Given ERH's strong demand, which has steadily increased year-over-year during Kelley's tenure, the number of patients using these types of services will bring in more revenue.

Overall, the hospital is in excellent shape, Kelley says, and that the difficulties of previous years are now a distant memory. He also says that ERH has developed an excellent reputation among doctors and surgeons in the area and throughout the northeast. Kelley says, in fact, that he recently received a call from a top physician group in Kingston that wanted to obtain privileges for two of its doctors. Kelley says the doctors were inquiring into inpatient rehab, something that has become a specialty of ERH.

"It's something we're very good at here," Kelley says.

The other hospital of choice for these physicians was Helen Hayes Hospital, one of the top rehab facilities in the country.

"That's an amazing endorsement," Kelley says. "I'm very flattered that it happened."

But things could become more difficult in the coming years, as ERH has been seeing small cuts virtually every year. Kelley is worried that these could add up.

"Over a period of years they [cuts] can have a cumulative effect," Kelley says.

But, as it stands now, ERH is in a good position to weather the economic storm, according to Kelley, and that the combination of a good reputation and strong demand means that, at least for now, the future looks good.

"We have to grow our way through this," Kelley says. "It's the only way."