New York Gov. Kathy Houchul on Dec. 13 vetoed the Local Input for Community Hospitals Act, a bill that would have strengthened community involvement in hospital closure decisions.
State lawmakers passed the bill in June, aiming to establish a formal process for public engagement when hospitals plan either to close entirely, or shut maternity, mental health or emergency care units.
In her veto message, Ms. Hochul acknowledged a need for greater transparency but argued the bill fails to account for the financial struggles many hospitals face. Following the veto, the governor directed the state's health department to develop new closure process reforms aimed at enhancing transparency while still considering hospitals' operational challenges.
"This bill does not appropriately balance that goal against the financial realities that struggling hospitals face and changes in healthcare services delivery," she wrote in the message, according to the Gothamist.
The proposed law would have required hospitals to notify the state 270 days before closing entirely, or 210 days before shutting critical units. The New York State Department of Health would have been responsible for holding public forums and issuing impact reports at least 150 days before closures. Current state guidelines require a 120-day notice.
Hospital industry representatives, including the Suburban Hospital Alliance of New York State, opposed the bill, calling it duplicative and overly burdensome. They warned that extended closure timelines could worsen financial crises at already distressed facilities.