NY plan harsher than expected

A New York state commission tasked with downsizing the state's healthcare industry has released its final recommendations--and the recommendations are tougher than the first round of predictions had anticipated. While original rumors had suggested that the commissioners would recommend the closure of nine hospitals, the group is actually calling for steps that would effectively eliminate 20-odd hospitals, taking thousands of jobs with them. Other hospitals will be asked to eliminate or hand off specific services, such as psychiatric care, substance abuse or maternity wards. The plan would cut the total number of hospital beds by 7 percent, or 4,200 beds. The plan is also trimming the state's nursing home industry by 2.6 percent, removing 3,000 beds. The commission estimates that its plan will increase revenue at surviving institutions by $720 million a year through increased patient volume. It also anticipates that increased efficiencies will save insurers $800 million per year. The plan will become law if the state legislature and governor let it stand.

For more information on the closures:
- read this New York Times piece

Related Article:
NY to close nine hospitals, cut 4,100 beds. Report
NY gets $1.5 billion to close ailing hospitals. Report

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