New York hospitals push back against governor's proposed $657M Medicaid cuts

Hospitals in New York are facing $657 million in Medicaid cuts under Democratic Gov. Andrew Cuomo's proposed budget, according to the Observer-Dispatch.  

Mr. Cuomo's original budget included $39 million in Medicaid cuts. However, when the state found it was facing a $2.3 billion shortfall, amendments to close the gap included another $618 million in Medicaid cuts.

Darlene Stromstad, president and CEO of Mohawk Valley Health System in Utica, N.Y., told the Observer-Dispatch, "Cuts of this magnitude jeopardize the continued availability of comprehensive healthcare services for everyone — not just Medicaid patients — in our region."

Proposals to curb the state's Medicaid spending include an overall 0.8 percent cut in Medicaid payments to hospitals and all other healthcare providers, as well as ditching a planned 2 percent increase in hospital Medicaid payments. The proposed rate hike would have been the first increase hospitals have seen in a decade, according to the report.

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