Governor's Budget Proposes Dramatic Medicaid Cuts

CLIFTON PARK, NY (02/01/2011)(readMedia)-- Governor Cuomo today proposed a $2.85 billion reduction in the state's Medicaid program.

"Combined with the federal share, health care providers across New York State will have their reimbursement cut by $5.7 billion. If this is not modified by the Governor's Medicaid Redesign Team or by the State Legislature, hospitals and nursing homes in Upstate New York will be forced to eliminate services and layoff staff," stated Gary J. Fitzgerald, president of the Iroquois Healthcare Alliance.

The proposal directs the Medicaid Redesign Team to identify initiatives to save the State $2.85 billion within the Medicaid program and provide recommendations to the Governor by March 1. Over the past several State budgets, the Medicaid program has been cut by reducing Medicaid reimbursement rates, which has been making it exceedingly difficult for Upstate hospitals to continue to offer services to their communities.

"While we understand the State's dire fiscal problem, this historic cut, if enacted, will devastate Upstate's health care delivery system," Fitzgerald said.

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Note: The Iroquois Healthcare Alliance is a regional trade association representing 57 hospitals and health systems in 31 upstate counties in New York.