New York City Health + Hospitals plans to sue state officials over $380 million in disproportionate share hospital payments it claims the state is unlawfully withholding, according to The New York Times.
The state typically dispersed the federal DSH funds to NYC Health + Hospitals in the summer or early fall. However, Stanley Brezenoff, the public health system's interim president and CEO, said the state has yet to hand out the funds this year. Mr. Brezenoff said the $380 million is for services provided to about 1.2 million patients.
A spokesperson for New York City Mayor Bill de Blasio told The New York Times the city was still trying to decide which parts of the state government the lawsuit will target.
Adding further stress to New York City's public hospitals, federal cuts to DSH payments kicked in Oct. 1.
The ACA calls for aggregate reductions to DSH payments annually from fiscal year 2014 through fiscal year 2020. Subsequent legislation delayed the start of the reductions until fiscal year 2018, which began Oct. 1, and pushed the end date back to fiscal year 2025. DSH payments would be gradually reduced by a total of $43 billion over the eight-year period.
Lawmakers are working on a solution to the funding issue. On Oct. 1, Sen. Chuck Schumer, D-N.Y., told The New York Times he is optimistic the cuts will be reversed before the end of 2017.
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