The now-completed legislative session saw an unprecedented shared-stakeholder budget process that trimmed 2 percent from the state”™s $132.5 billion spending plan, while setting in motion Medicaid reforms that could improve efficiencies and care, and save money. Budgetary, regulatory, and other legislative activity also advanced, leaving the hospital industry with a mixed bag of results.
Further, some legislative priorities that did not cross the finish this session may be back again when the legislature reconvenes next year. The Senate may return for a special session in a few weeks. Major actions included:
· More Transitional Care Units (TCUs) will dot New York state now that the new Public Health and Health Care Planning Council (PHHPC) approved seven demonstration sites. These units offer a specially designated level of care provided to Medicare beneficiaries whose acute conditions have not been stabilized but who are not well enough to be discharged or transferred to a nursing home.
· Certificate of Need (CON) reform passed both chambers and is expected to be signed by the governor. The legislation was developed by the Healthcare Association of New York State and is designed to ease the regulatory burden on hospitals. Under the bill, routine maintenance, infrastructure (nonclinical), and one-for-one replacement projects will no longer require cumbersome and time-consuming CON review by the state Health Department. The PHHPC at its meeting also looked at a number of backlogged CON projects and approved them. The bill had primary sponsorship from Health Committee Chairman Sen. Kemp Hannon and Sen. Majority Leader Dean Skelos and co-sponsorship from valley legislators Sen. Bill Larkin and Assemblywoman Aileen Gunther.
· Medical Malpractice legislation did not come to the Senate floor for a vote by direction of Skelos. A pair of proposals would have prohibited defense counsel in a malpractice lawsuit from privately interviewing the plaintiff”™s treating physician. No limit would have been placed on the plaintiff”™s attorney.
· Nurse Staffing Ratio bills surfaced yet again this legislative session, but did not come to fruition. However, this continues to be an area of concern for hospitals in the Hudson Valley.
· MTA Payroll Tax Relief ”“ popular with regional hospitals and a raft of regional businesses ”“ did not happen this session. The Senate had voted to repeal the tax, but the bill was never brought to the floor for a vote by the Assembly. State Sens. Stephen Saland and John Bonacic, had each previously introduced their own MTA Tax Repeal bills.
· The current debt-ceiling standoff in Washington, D.C., has statewide implications, notably for hospitals. Unless the debt ceiling is raised by Aug. 2, the U.S. will default on its existing financial obligations. Because Medicare and Medicaid comprise more than 20 percent of all federal spending, these programs remain vulnerable targets as lawmakers look for companion cuts to any raise in the debt ceiling. The hospital industry, which has already committed to $155 billion in cuts during the next 10 years to help fund the new health reform law, is especially concerned lawmakers will further slash Medicare/Medicaid budgets.
An independent study conducted by the Virginia-based Lewin Group found that one such cost-cutting proposal, the Commitment to American Prosperity (CAP) Act, would yield disastrous consequences. It said that by 2021, 5.1 million individuals would lose their health insurance; cuts to hospitals would force most to operate in the red; physician fees would be reduced; and Social Security benefits would be cut by nearly 20 percent.
Hospital leaders are taking their worries to Washington on July 13 during a special Advocacy Day organized by the American Hospital Association.
“Hospitals are unique and vital institutions in their communities,” said Kevin Dahill, president/CEO of the Northern Metropolitan Hospital Association (NorMet), the organization that represents Hudson Valley hospitals. “We are there 24/7 to serve the needs of all patients in our respective legislators”™ districts. We can”™t absorb any more cuts.”
