March 4, 2016
The Cuomo administration on Friday awarded $1.2 billion in capital funding for hospitals and clinics, money that executives had been anxiously awaiting since it was first approved two years ago.
The vast majority of that funding — 90 percent — will go toward hospitals while about $120 million will be spent on clinics.
The funding dovetails with the state’s Delivery System Reform Incentive Payment, or DSRIP, program, the more than $7 billion initiative that aims to reduce avoidable hospitalizations by 25 percent by investing in a series of care management programs that, in theory, produce better health outcomes and prevent those with chronic diseases such as asthma or diabetes from relying on the emergency room as a primary source of care.
The $7 billion was part of a federal waiver, which did not allow any money to be spent on capital projects such as outpatient clinics or IT to manage population health. Those are the kind of investments that most public health officials believe are needed to achieve the desired results.
To that end, Gov. Andrew Cuomo allocated $1.2 billion in his 2014-15 budget. But for two years, the money stayed in Albany, despite cries from health care advocates for the governor to release the funding.
“The awards we are announcing today will help us meet DSRIP’s goal of reducing avoidable admissions,” said state Health Commissioner Howard Zucker, who announced the awards at the Greater New York Hospital Association in Manhattan on Friday.
Zucker spoke for less than 10 minutes and did not take questions about the project.
But both trade associations stepped up to praise the governor for his efforts to improve the delivery system.
“It’s a big day for anybody who cares anything about health care,” said Ken Raske, president of Greater New York Hospital Association.
The governor’s office also released $355 million in Essential Health Care Provider Support funding, which hospitals can use to pay down debt, a move that might make them more attractive to a larger health system.
Maimonides in Brooklyn, for example, received $24 million for their advanced ambulatory care network and an additional $20 million for debt restructuring.
Maimonides recently partnered with Northwell Health and could become part of the larger system in future years.
New York City’s Health + Hospitals Corporation received the largest share of the funding, roughly $300 million, or more than 20 percent of the total. The money is being used to improve the IT system, which will better allow the city’s public hospitals to manage population health.
New York Presbyterian, which recently reported $228.9 in operating income, received more than $10 million.
“This money is so important to the health care community,” said Richard Cook, the COO of the Healthcare Association of New York State. “We are going to be able to develop new models of care.”
A full list of recipients is here: http://on.ny.gov/1Ycw3K1