NY tentatively votes to cut healthcare spending by $2.3B

The New York state legislature has voted to cut health care spending by as much as $2.3 billion, which is about $1.2 billion less than Gov. David Patterson's original recommendations. If the budget passes in its current form, hospitals are set to lose as much as $306.4 million, while nursing home spending will be cut as much as $224.6 million; in-home health care spending will drop $68.1 million. Medicaid reimbursements for both inpatient hospital and primary care will also shrink if this budget is approved.

Driven by the waning economy, Medicaid enrollment is on the rise in New York and throughout the country. As a result, in total federal, state and local Medicaid spending in the state will actually increase from $45.27 billion for fiscal year 2008-09, to $48.57 billion in FY 2009-10, a jump of more than 7 percent.

The Healthcare Association of New York State said a lobby representing hospitals, nursing homes and home care agencies warned that this proposed budget will lead to layoffs and reductions in service.

To learn more:
- see The Post-Standard article

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