Healthcare Business News

N.Y.C. health system faces even deeper cuts

By Melanie Evans
Posted: April 10, 2009 - 5:00 pm ET

The New York City Health and Hospitals Corp. said cuts will go far deeper than the $105 million previously announced thanks to New York’s recent budget fix.

State lawmakers in late March agreed to $2.3 billion in healthcare fees and spending cuts to help close a $4.7 billion deficit for the year that began April 1. HHC said the public system will cut another $210 million from its budget for the year that begins July 1. Less than a month ago, the 11-hospital system said it would reduce spending by $105 million and eliminate 400 jobs because of Medicaid cuts, rising expenses and a growing number of uninsured patients.

In a letter to its community advisory board, labor and employees, HHC President Alan Aviles said the system suffered disproportionate cuts under the state budget and said public hospitals are excluded from state charity care and healthcare reform funds.

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