NY hospitals given closure money

In coming times, 23 New York hospitals and seven nursing homes are due to close or be merged as part of a large-scale restructuring of the state's healthcare industry. The restructuring, which isn't voluntary, flows out of the recommendations of a state panel empowered by law to demand these moves.

Now, at least, the hospitals and homes affected will get some cash for their trouble. The state has agreed to give them a total of $360 million to cover legal costs associated with the closings, as well as pay off existing debt. The state will also pass out an additional $190 million which draws on both its own funds and federal dollars. New York officials are also expected to distribute more money still to help other remaining facilities cope with the loss of services and capacity in their regions.

When complete, these closings should cut the total number of hospital beds in the state by 7 percent, while increasing revenue at surviving institutions by $720 million a year, according to projects by health planners.

To get more information on the closures:
- read this article from The New York Times

Related Articles:
NY to close nine hospitals, cut 4,100 beds. Report
NY plan harsher than expected. Report
NY gets $1.5 billion to close ailing hospitals. Report

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.