ALBANY – A hospital advocacy group said yesterday Governor Pataki’s proposed health care cuts would devastate every hospital in the state.The 229 hospitals statewide would lose a combined $431 million annually and about 20 hospitals would be pushed into the red as a result of Medicaid cuts and reforms, according to the Healthcare Association of New York State. Smaller facilities like Auburn Memorial Hospital in Cayuga County would lose $300,000 while larger institutions like Bellevue Hospital Center would lose $13 million, according to the report.HANYS did not specify which hospitals would go into a deficit. The cuts would send a severe blow to hospitals that have sustained steep cuts over the past several years and are already struggling to stay afloat, HANYS president, Daniel Sisto said.Hospitals could start closing blood clinics, laying off employees, and scaling back community service programs to remain open. The state Budget Division meanwhile said the cuts are necessary to curb the state’s ballooning Medicaid costs blamed for driving up local property taxes and state spending. The Legislature is now analyzing Mr. Pataki’s proposal and will try to negotiate a final budget by the April 1 start of the fiscal year. The Legislature traditionally increases health spending.

At $44.5 million, NewYork’s Medicaid system is the largest in the nation, surpassing California, which covers significantly more people.