New York has reached an agreement with federal officials that will let the state reallocate $8 billion in federal Medicaid funding to help financially struggling hospitals, according to a report from The Wall Street Journal.
Under the waiver, the state aims to cut avoidable hospital costs by 25 percent. HHS has stipulated New York will need to accomplish ongoing goals to keep receiving funding, according to the report. The waiver includes $1.08 billion for Medicaid improvements such as health homes for complex patient cases, $500 million for interim subsidies and $6.42 billion in incentives for overhauls.
During his annual budget address earlier this year, Gov. Andrew Cuomo said three Brooklyn, N.Y., hospitals — Brookdale University Hospital and Medical Center, Interfaith Medical Center and Long Island College Hospital — could close unless CMS approved the state's request for a waiver to reinvest federal Medicaid funds. The state originally asked to reallocate $10 billion of $17 billion in federal funds New York anticipates saving through Medicaid reform.
Mr. Cuomo — who included a $1.2 billion capital program for hospitals in financial distress in his budget — said the hospitals' struggles "defy state solution" and called on the federal government to approve the state's waiver as soon as possible.
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