Illinois stiffs vendors, health-care providers going under

Most amazing part of this news is that Chicago wanted the Olympics after spending $50+ million to finish 4 out 4, and today we find the entire Illinois State Government is broke and cannot pay bills. The State has racked up $3B in unpaid bills and now health-care providers are going out of business because they haven't been paid. If a state is basically bankrupt, then why would a city like Chicago waste so much money on a boondoggle like the Olympics?

Everyone needs to take a look at what is happening in IL as the State has not paid its bills and healthcare providers are being put out of business. Just maybe this is what would lie ahead if the Federal Government took over healthcare and was responsible for reimbursement -- in fact, we would bet on this happening.

This didn't happen overnight, but now I guess IL wants the Feds to bail them out after they have overspent their budget. Maybe a few less grants to Government/Private grants to ACORN would have helped out genuine care givers who are doing their job.

Illinois stiffs vendors, health-care providers going under
Hot Air Oct. 7, 2009 Ed Morrissey

The state of Illinois can’t pay its bills, according to the local CBS affiliate in Chicago. Illinois has a $3 billion cash gap in its budget, and is now pushing vendor payments out to three months on average. One health-care provider that supports at-home care may have to shut its doors and lay off its employees while it waits for almost a million dollars owed by the state:

The State of Illinois’ pile of unpaid bills has grown to a record-breaking $3 billion. Comptroller Dan Hynes said Tuesday it’s never before been this bad at this point in any previous fiscal year. CBS 2 Political Editor Mike Flannery reports that some social service agencies that rely heavily on state reimbursement warn they will soon be forced out of business.

Hynes said that things are likely to get worse before the state’s bleak revenue picture begins to improve. …

It’s all very discouraging to the physician who runs Family Home Service.

Dr. Norman James said he does not have enough cash to pay his 250 employees this Friday. He said he may have to close the doors, leaving more than 450 clients without the support they need to stay in their own homes and out of expensive nursing homes.

Dr. James said his bank had tripled the size of his line of credit, but that money is now all gone.

Dr. James said Illinois owes his agency $900,000, about $700,000 of it past due by up to five months.

But the state legislature and governor are responding to this budget emergency, right? After all, tax revenues are falling, creditors are calling at a rate of 2600 calls per week, and vital services will cease operations unless something gets done quickly to free up cash.

(Excerpt) Read more at hotair.com