Major capital spending by the nation's largest municipal hospital system has been put on ice as city and system officials re-examine long-range capital needs.
As part of that process, New York Mayor Rudolph Giuliani and officials of the New York City Health and Hospitals Corp. have decided to cancel a $485 million project to replace 523-bed Queens Hospital Center.
Stalling HHC's capital program-with projected spending of $1.37 billion in the next four years-is part of the mayor's fiscal 1996 budget blueprint, released late last month. The budget anticipates a $607 million operating deficit for HHC in 1996 attributed to Medicaid spending reductions the New York Legislature is debating as part of its 1996 budget.
Giuliani said the re-evaluation of HHC's capital program was prompted by decreasing inpatient utilization, pending Medicaid losses and proposed privatization of some HHC facilities.
The Queens project cancellation follows the mayor's decision last year to suspend a $1 billion replacement of Kings County Hospital Center in Brooklyn.