New York hospitals face $400M in cuts

Payments to New York hospitals will be reduced by about $400 million under the state's fiscal year 2021 budget, which Gov. Andrew Cuomo signed April 3. 

A panel that the governor convened earlier this year released proposals in mid-March to rein in New York's growing Medicaid program. The final budget included much of the governor's plan to restructructure the state's Medicaid program, including about $400 million in cuts to hospitals, despite pushback from several state lawmakers and healthcare providers, according to New York Daily News

The panel tasked with proposing ways to restructure the state's Medicaid program was formed in January, before COVID-19 had reached the U.S. With New York City now at the epicenter of the outbreak, the cuts are "cruel, inhumane and and unacceptable," reads a letter from six lawmakers from Brooklyn to Mr. Cuomo, according to The New York Times

Before the budget was adopted, Mr. Cuomo defended the cuts by pointing to the additional funds hospitals will receive under the federal COVID-19 relief packages, according to The New York Times

Despite the cuts, Medicaid spending will increase by 3 percent, or about $500 million. 

"The FY 2021 Enacted Budget advances reforms to the Medicaid program that will ensure it remains financially viable for the future so it can continue to provide high-quality care to more than 6 million New Yorkers," states a summary of the budget highlights from the governor's office. 

Some of the cuts to New York hospitals may be delayed until after the COVID-19 pandemic, according to City & State New York, which cited an analysis by the Citizens Budget Commision. 


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