NYC Health & Hospitals cur­tails hir­ing in wake of DSH cuts

Modern Healthcare - - REGIONAL NEWS - — Jonathan LaMan­tia, Crain’s New York Busi­ness

NYC Health & Hospitals is tak­ing dras­tic steps to off­set a de­lay in Med­i­caid dis­pro­por­tion­ate-share fund­ing.

To cope with the fund­ing gap, to­tal­ing $380 mil­lion, the 11-hos­pi­tal health sys­tem will fill just 25% of the 250 to 300 jobs that typ­i­cally be­come avail­able each month, in­terim CEO Stan­ley Brezenoff wrote in a let­ter to em­ploy­ees. The city had al­ready been re­hir­ing for only half of open po­si­tions un­der its cost-sav­ings plan to avoid a $1.8 bil­lion deficit by fis­cal 2020.

DSH and up­per pay­ment level sup­ple­men­tal Med­i­caid pay­ments ac­count for about a third of the sys­tem’s $8 bil­lion op­er­at­ing bud­get, ac­cord­ing to Brezenoff.

Gov. An­drew Cuomo has not dis­trib­uted the fund­ing from fis­cal 2017, which ended Sept. 30, in re­sponse to fed­eral cuts that took ef­fect for the cur­rent year on Oct. 1. New York stands to lose $330 mil­lion this year and $1.1 bil­lion in the next 18 months, ac­cord­ing to the state.

Cuomo said last week that the state was hold­ing onto the money while it de­ter­mined a fair way to distribute it. De­cid­ing how to do that could re­quire a spe­cial ses­sion of the state Leg­is­la­ture, he said.


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