Regional News/Northeast: N.Y. state budget devotes $1.2 billion to realigning healthcare system

New York state would spend $1.2 billion to restructure hospitals, long-term care and other healthcare services and invest an additional $75 million in health information technology, under Gov. Andrew Cuomo's newly released capital budget.

Cuomo's budget calls for grants to “improve the financial viability and efficiency” of the state's hospitals, nursing homes and other healthcare operators. New financing would promote mergers and consolidation; an increase in primary care and care coordination; and efforts that better match supply and demand for hospital and nursing home beds.

Hospitals in Brooklyn, for example, are facing financial distress. A state-commissioned 2011 panel called for consolidation of Brooklyn's troubled hospitals.

The budget plan also would increase spending by $55 million for New York's health information network. Development of a database to house medical bill records from all public and private health plans would receive another $10 million. Capital spending would increase by $10 million for other health information technology initiatives.

Follow Melanie Evans on Twitter: @MHmevans