A previously proposed for-profit hospital pilot program in New York currently will not see the light of day, as it has been dropped from the state's budget, according to a New York Times report.
In February, New York Gov. Andrew Cuomo proposed his executive budget for 2013-14, which included a provision that would have allowed for-profit companies to own and operate two hospitals in the state — one in Brooklyn and another in another part of the state. The demonstration projects were seen as a major shift because under New York law, all owners of a corporation that operate a for-profit hospital must be "natural persons." This essentially prevents investor-owned corporations from owning and operating hospitals.
The New York State Assembly nixed the program, and according to the report, Richard Gottfried, a Democrat and chairman of the Assembly's Health Committee, "would not budge" on allowing the program.
Investment firms hailed the for-profit hospital demo, which originally was proposed for 10 hospitals, and some still plan to pursue a way to revive the projects. The New York State Nurses Association praised the legislature for scrapping the measure. Jill Furillo, executive director of the NYSNA, told the Times, "For-profit healthcare does not work. People in the Assembly listened to us, and so did Gov. Andrew Cuomo."
In February, New York Gov. Andrew Cuomo proposed his executive budget for 2013-14, which included a provision that would have allowed for-profit companies to own and operate two hospitals in the state — one in Brooklyn and another in another part of the state. The demonstration projects were seen as a major shift because under New York law, all owners of a corporation that operate a for-profit hospital must be "natural persons." This essentially prevents investor-owned corporations from owning and operating hospitals.
The New York State Assembly nixed the program, and according to the report, Richard Gottfried, a Democrat and chairman of the Assembly's Health Committee, "would not budge" on allowing the program.
Investment firms hailed the for-profit hospital demo, which originally was proposed for 10 hospitals, and some still plan to pursue a way to revive the projects. The New York State Nurses Association praised the legislature for scrapping the measure. Jill Furillo, executive director of the NYSNA, told the Times, "For-profit healthcare does not work. People in the Assembly listened to us, and so did Gov. Andrew Cuomo."
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