Cuomo wants more state power over hospitals

New York Gov. Andrew Cuomo proposed legislation that would give state health officials power to remove hospital managers and not-for-profit hospital board members.

The legislation, included in the governor's proposed budget (PDF) for the fiscal year that begins in April, would give the New York health commissioner authority to appoint temporary hospital leaders at hospitals where there are “significant management failures” or financial distress. The temporary manager would be responsible for efforts to address management failures, financial instability and for promoting healthcare quality and access, the proposal said. Temporary managers would be appointed for 180 days with additional 90-day terms based on need.

Under Cuomo's proposal, the state would also have power to suspend or limit operating certificates and appoint temporary board members at not-for-profits. The state could take such actions when a not-for-profit board member faces a felony indictment or removal by the state attorney general or when the organization repeatedly breaks laws or regulations, the Greater New York Hospital Association said in a memo to its members.

In December, a work group for the state's Medicaid Redesign Team recommended the health commissioner have authority to remove poorly performing hospital board members.