Gov. Paterson had originally included plans to reform the controversial 27-year old system in his executive budget by determining payment for charity care based on costs of services provided to the uninsured rather than bad debts, as is done now, according to the report.
Under the current program, hospitals in the state receive funding from a special pool of money for treating uninsured and underinsured patients. Critics of the program argue that hospitals are never required to show proof they actually provided care to the uninsured.
Two years ago, the state began to require hospitals to keep charity care records; however, only 10 percent of charity care payments are currently based on these records. Most money distributed from the pool is allocated based on hospital estimates of uncompensated care, according to the report.
The hospital lobby opposed the changes to the system, and Gov. Paterson removed the reform plan from the latest version of his budget. Consumer groups are unhappy with Gov. Paterson’s decision to drop the changes, arguing that continuing the program in its current state is equivalent to nearly $850 million “going out the door unaudited,” according to the report.
Read Crain’s New York Business’s report on New York charity care payments.
