Hospitals support Cuomo Medicaid cuts

Long Island hospitals were generally supportive Friday of a new proposal that would force them to tighten their belts as the state moves toward limiting the future cost of the $53 billion Medicaid health program for poor people.

"Going into the budget deliberations, it was assumed that the governor was looking for a 10 percent cut in Medicaid spending, so an actual cut of about 3 percent isn't nearly as bad as it could have been," said Douglas Melzer, chief executive of Long Beach Medical Center.

On Thursday, Cuomo's Medicaid Redesign Team recommended $2.3 billion in savings to the sprawling program for poor people. The 79 recommendations, which Cuomo was expected to forward to the State Legislature next week, include a 4 percent cap on growth in state Medicaid spending, limits on medical malpractice damages and moving nearly all patients into managed care.

Kevin Dahill, president of the Nassau-Suffolk Hospital Council, said all 23 hospitals on Long Island would take an across-the-board cut in their Medicaid reimbursement. "In addition, over the next two years they will have to find additional savings to reduce the overall state expenditure in Medicaid," he said.

Many of those hospitals already were moving toward cost containment, in part because they expected Medicaid cuts. For instance, Melzer said the Long Beach hospital was consolidating two kitchens - one for the hospital and one for its nursing home - into a single unit to serve both.

Mark Bogen, vice president for finance at South Nassau Communities Hospital in Oceanside, said the hospitals were "hopeful" about the state panel's plan.

"There is an agreement with the governor on a two-year cap in spending, but there is still concern about living within that cap," Bogen said. "At the end of the day, if we don't, the governor probably will expect all providers to share in some pro rata fashion that might be another 2 percent or so."

Many of those interviewed Friday were represented, either directly or through industry associations, on the redesign panel.