New York Healthcare Faces $3.5 Billion in Cuts Under Governor’s Budget Proposal

New York Gov. David Paterson has proposed a 2009-2010 executive budget that includes $3.5 billion in healthcare spending cuts and taxes.

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According to the Greater New York Hospital Association (GNYHA), these cuts would include:

  • $799 million in hospital cuts;
  • $424 million in nursing home cuts; and
  • $190 million in home care cuts.

The GNYHA said "the cuts, if enacted, would result in layoffs, elimination of healthcare services, and, in some cases, facility closures," according to the GNYHA Web site.

The executive budget also recommends changes that would see $3.0 billion in healthcare savings for the state in 2010-2011.

A press release from Gov. Paterson explains the proposed changes to Medicaid and healthcare with the following statement:

If no actions were taken to control costs, State Funds Medicaid spending would grow 12 percent to $17.3 billion. The Executive Budget proposes taking actions to limit State Funds Medicaid spending to $16.0 billion, an increase of 3.8 percent from 2008-09. The recommendation focus on reforming ineffective hospital, nursing home and home care reimbursement systems to direct spending to more appropriate primary and community based settings. Even after these actions, total federal, state and local Medicaid spending would still increase by $432 million or 1.0 percent compared to 2008-09 to a total of $45.4 billion, and New York’s program would still be the most expensive in the nation.

Visit GNYHA.

Read Gov. Paterson’s press release about the proposed New York 2009-2010 executive budget.

View the executive budget component proposal for New York healthcare/Medicaid savings.

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