New York City public hospital system announces cuts targeting mental health, community clinics

Mar 23 2009

New York City's public hospital system on Thursday said it will cut 400 jobs and close some children's mental health programs, pharmacies and community clinics that serve more than 11,000 residents, the New York Times reports.

Alan Aviles, president of the city Health and Hospitals Corporation, in a news conference at HHC headquarters said the cuts are necessary because of reductions in state Medicaid payments, a significant increase in uninsured patients seeking care, and rising costs of labor, drugs and medical supplies. He said that the cuts could affect access to care for low-income, uninsured patients. The city system has seen an 8% increase in the number of uninsured patients from last year, when the total cost of treating the uninsured population was $850 million. He said, "This is only the first round; we're dealing with one-third of the problem. We do anticipate that there will be additional cost-containment measures."

Aviles also asked Gov. David Paterson (D) to direct some of the nearly $10 billion in federal stimulus money that the state will receive to the public hospital system. "We want him to realize our backs are against the wall at this point," Aviles said, adding, "Further cuts will lead to the beginning of dismantling our health care system in New York City." State Health Commissioner Richard Daines, speaking for Paterson, said that the administration is still discussing how to use the stimulus money and that Paterson was considering initiatives that would increase reimbursement rates for treating uninsured residents and increase payments for clinic care, which could help public hospitals. He added that some cuts were necessary because of the "unprecedented fiscal crisis." However, he said that HHC might be better off delaying major expansion projects and suggested that they consider suspending the cuts until the state adopts a budget plan (Hartocollis, New York Times, 3/20).