Health Officials in New York Reach an Agreement with the State Government


Following battles between public hospital system of New York and the administration of Gov. Andrew M. Cuomo, the governor, and his administration have given in to the demands of the hospital system. The hospitals through their lawyers recently threatened the state government with a lawsuit for withholding $360 million of their money. They said that the state was acting in bad faith. According to the NYC Health & Hospitals, the state government owed them this money after it had taken care of uninsured patients in the state. Part of the money arose from covering some of the patients who were on Medicaid. According to the interim president of NYC Health &Hospital Stanley Brezenoff, this money is supposed to be disbursed to the hospitals by early fall or during the summer. Instead, the interim president laments that that time has passed and there is still no sign of a check from the state. At the same time, the state government said that there was no law requiring it to make such payments in the stipulated deadline. This follows the reduction of federal aid at the beginning of the month. For starters, these funds are referred to as Disproportionate Share Hospital Payments.

However, city officials were furious last week over this decision by the state. They claimed that the state was acting in bad faith and for this reason, they would file a lawsuit. However, Jason Helgerson who is the Medicaid director in New York decided to write a letter to Mr. Brezenoff. In the letter, he claimed that the state had put into consideration the grave circumstances the situation. It’s for this reason that he accepted to make a payment of $360 million. Mr. Helgerson, however, insisted on the importance of justifying the allocation that goes to every hospital after the federal cuts had been implemented. He said that this would happen despite the late timings of the invoices. This decision by the state of New York comes at a crucial time as the healthcare systems across the nations are in darkness after President Trump signed an executive order. The order, according to experts, is supposed to instruct the government to refrain from reimbursing discounts to insurance companies. As a result, it is expected that insurance companies will raise their premiums in response to the actions of the president. However, the NYC Health & Hospitals did not react to the news. Up to now, they are yet to issue a comment.


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