While testifying before the City Council's Committee on Hospitals Monday, Dr. Mitchell Katz, New York City Health + Hospitals president and CEO, said the system has made "great progress" on the mayor's transformation plan, but there is more work ahead.
In his testimony on fiscal 2020's executive preliminary budget, Katz noted that NYC H+H is on track to achieve $757 million from revenue-generating initiatives and $430 million from expense-reducing initiatives.
"Driven by improved billing and better performance on our value-based contracts, we're just $10 million short of target for this year's budget," Katz said.
In terms of expenses, he said, the system is less than $25 million—or 1%—over budget. That's due to investments, such as the hiring of 340 nurses and staff to help the system improve its ability to bill and collect money from payers. He added that investments have been offset by the reduction of temporary workers, consultants and managerial-level staff.
He cited a need for the full implementation of the Epic health records and financial system and the opening of retail pharmacies in hospitals and urgent-care clinics to reduce emergency department visits.
Katz also mentioned concerns about certain initiatives by the Trump administration. President Donald Trump's budget slashes the system's revenue "by billions of dollars," Katz said.
NYC H+H is facing Medicaid disproportionate share hospital cuts of more than $400 million in federal funds this coming year and $600 million in the subsequent five years, he said.
"The president's budget not only maintains those cuts, but it makes the situation much worse, with deeper cuts to Medicare and Medicaid," Katz said. "We are grateful for the past support the council has provided in opposing these cuts and look forward to working with the council again to advocate against these cuts."
Katz also mentioned the system's previous concern that it could see a loss of up to $362 million in the first year alone if the proposed changes to the Department of Homeland Security's public-charge rule are implemented.
A former spokesman for NYC H+H said earlier this year that the system and its patients were already feeling the impact of the proposed changes, which ultimately could affect 350,000 of the more than 1 million patients it sees each year.
Another focus of NYC H+H will be partaking in the mayor's Guaranteed Care Initiative, Katz said. The system's program for New Yorkers ineligible for insurance or unable to afford options on the exchange is slated to start in the Bronx this summer.
"Katz: NYC Health + Hospitals moving in right direction, more work ahead" originally appeared in Crain's New York Business.
