FOR IMMEDIATE RELEASE:
April 1, 2009

GOVERNOR PATERSON JOINS PRIMARY CARE ADVOCATES IN PROMOTING MAJOR REFORMS TO NEW YORK’S HEALTH CARE SYSTEM

Budget Agreement Invests More Than $290 Million in Primary and Preventive Care

Reforms are Part of $2.3 Billion Health Care Savings Plan – Record Savings for Taxpayers

Governor David A. Paterson today joined primary care advocates at the Health Center on Broad Street in Glens Falls to promote the significant reforms to New York’s health care system included in the 2009-10 budget agreement. The budget agreement will reform the way health care is delivered in New York State by rationalizing the State’s Medicaid reimbursement system to allow for the shift of funding towards primary and preventive care – an investment of more than $290 million. This funding will deter unnecessary and expensive hospitalizations, creating a higher quality and more sustainable health care system. In addition, the budget agreement includes a record $2.3 billion health care savings plan to help address an unprecedented $17.7 billion budget deficit.

“The historic reforms enacted in this year’s budget agreement represent the most dramatic overhaul to our health care system in decades. These reforms will cut waste, make government more accountable to taxpayers and deliver positive results for all New Yorkers,” said Governor Paterson. “New Yorkers deserve access to high-quality health care and through investment in primary and preventive care we will not only help save money but will help save lives in the cities, towns and villages across this State.”

Historically, New York State has overpaid for inpatient care and provided insufficient resources for primary care. By reforming how Medicaid pays for hospital care and reducing inflated inpatient rates by $225 million, this budget brings inpatient reimbursement closer to actual costs – making Medicaid a smarter purchaser. Additionally, for the first time in more than two decades, Medicaid will pay a fair price for primary and other outpatient services in hospital clinics. This and other savings actions in the budget agreement allow New York to shift funding towards primary and preventive care.

New outpatient investments in the budget agreement include:


The budget agreement also recognizes the fact that hospitals will face challenges when adapting to a more rational reimbursement system, creating efficiencies in their operations, and re-aligning their business models towards primary care. To assist them, this budget includes a $75 million Transitional Reform Fund. This “bridge to reform” provides affected institutions with a greater opportunity to adjust their operations through enhanced resources as they realign their delivery model away from expensive inpatient care and towards primary and preventive care and maintain services for uninsured patients. Other initiatives include:

In addition, the budget agreement includes a designated pool of $25 million in discretionary HEAL funding (which becomes a total of $50 million when matched with federal funding through the Federal-State Health Reform Partnership (FSHRP)) to assist struggling safety net and other hospitals with the capital for restructuring necessary to transition to a new reimbursement system.

Senate Majority Leader Malcolm A. Smith said: “Restoring cuts was just one piece of the puzzle. New investment in primary and preventive care, specifically for community based healthcare clinics was very important to the Senate because of the disparities and limited access we see many patients dealing with. Community based centers mean that patients are significantly more likely to be served by fellow community members sensitive to their cultural need, thereby increasing the likelihood of regular visits.”

Assembly Speaker Sheldon Silver said: “The investment New York makes this year in primary and preventative health care will help preserve lives and save taxpayers millions of dollars in the coming years. The services provided by hospital clinics and community health centers contain costs by screening and treating illnesses in patients before they require hospitalization. During difficult economic times, it was important that New York find areas to cut spending, but do so in a way that does not diminish the quality of health services. Our $2.3 billion savings plan is an important step towards reducing health care costs in New York.”

State Health Commissioner Richard F. Daines, M.D., said: “Too many New Yorkers are not getting the kind of health care that prevents and manages health problems, like diabetes, before they become life-threatening as well as costly. Recognizing that the current system of health care is failing New Yorkers and driving up health care costs, the budget agreement reached by Governor Paterson and legislative leaders means better health for New Yorkers through investment in preventive care and chronic disease management.”

CEO of Hudson Headwaters Health Network John Rugge, M.D. said: “Primary care and prevention have been proven to produce better health outcomes and lower costs for the general population. Primary care is the foundation of the health care system, and New York State is taking bold steps to shore it up.”

The budget agreement includes a Health Care savings package totaling $2.3 billion in 2009-10 – the largest amount in State history (previous high was $1.2 billion in 2005-06), including actions taken in the Deficit Reduction Plan, and supports a number of key public health investments, including funding for food pantries at a time of growing need ($4.4 million), lead poisoning prevention ($2.5 million), cancer screening ($3.2 million), anti-obesity programs ($1 million), and other priorities.


Additional quotes provided in support include:

Senator Tom Duane said: “The long-term goal is to limit costly emergency room visits. People should not be forced, or feel for whatever reason, that they should wait to get checkups and the regular care that we all need. This is a particular problem facing underserved and rural areas where travel from one’s home to the doctor can be difficult. This was a very tough year for the budget, but in all, we not only preserved but expanded vital aspects of our healthcare system and for good reason – every one of us depends on these services.”

Assemblyman Richard N. Gottfried said: “The budget reflects the strong progressive commitment to health care reform of Governor Paterson, his exceptional health team, the Assembly and the Senate. We’re shifting resources into primary and preventive care; expanding Family Health Plus; making it easier to apply for and Medicaid, Family Health Plus and Child Health Plus; supporting community health centers; and moving to more reasonable payment systems for hospitals and nursing homes.”

Chair of the American Academy of Pediatrics (AAP), District II, New York State, Dr. Henry Schaeffer said: “The members of the American Academy of Pediatrics congratulate the Governor and the legislature for coming together to bring real health care reform to New York’s children and their families. Targeted budget investments in enhanced primary and preventive care, streamlining access to public and subsidized health programs like Child Health Plus, and a financial commitment to create a ‘Medical Home’ care model all take New York’s children and families closer and closer to truly universal, high quality health care. Once again, New York is taking the lead. With our successes, we will show the way to an accessible, high quality health care system that serves all children and families.”

Director of Policy at the Community Health Care Association of New York State (CHCANYS) Kate Breslin said: “This is a tough time and despite the weight of deficits and shortfalls, the Governor and Legislative leaders braved the wrath of some extremely powerful interests and increased funding for the state’s primary health care safety net.”

President and CEO of Housing Works Charles King said: “In a time of unprecedented fiscal challenges, the Governor was able to accomplish the incredible feat of saving New York State $2.3 billion dollars in healthcare costs while redirecting desperately needed Medicaid funds to critical areas of the State’s health care safety net: doctors who serve the poor and community and ambulatory primary and preventative care. For poor New Yorkers living with AIDS and HIV, the Governor’s reforms are nothing short of lifesaving. His health care package will mean enhanced health services in their communities that will stabilize their health, prolong their lives and reduce the spread of the AIDS epidemic in communities already hardest hit.”

Coordinator for Medicaid Matters New York Lara Kassel said: “The Governor and the Legislature took some important steps in this year’s budget, including major investments in primary care that will make a huge difference to the health and welfare of all New Yorkers. In such a difficult economic climate, that should be applauded.”

President of the Medical Society of the State of New York Dr. Michael H. Rosenberg said: “The Medical Society commends the Governor for his leadership in assuring that the Budget for fiscal year 2009-2010 devotes more funding to primary, preventive and community-based care which will enable physicians to manage patient care and help their patients to control factors which may exacerbate existing or chronic conditions such as diabetes and asthma which have each reached epidemic levels in New York State. New York State’s physicians have always been an integral part of the positive healthcare developments which make our health system the finest in the world. We are committed to a continued partnership with New York State to expand and enhance the availability and quality of health care services to all residents of our great state. We look forward to continuing our work with Governor Paterson and the legislature as we move toward these vitally important public health objectives.”

Executive Vice President for the NYS Academy of Family Physicians Vito Grasso said: “The New York State Academy of Family Physicians, on behalf of its 4,300 member physicians, residents and students in family practice, applauds Governor Paterson and the State Legislature for their continued leadership and commitment to primary care, health prevention and expanded access to health care coverage through the initiatives including in the final State Budget for 2009-10. The Academy strongly supports the budget’s continued investments in primary care, shifting state funding from inpatient to outpatient settings including physician offices and the continued funding to help recruit and retain physicians in the primary care field. These initiatives are critical to ensure that every New Yorker has access to a primary care physician and a patient-centered medical home in order to meet their health care needs, particularly in low income, underserved and rural areas of the State.”

Director of New York State AHEC System Dr. Thomas C. Rosenthal, said: “The New York State Area Health Education Center (AHEC) System is pleased that the State budget invests in primary and preventive care. AHEC’s community based health workforce development initiatives are designed to improve the health of New Yorkers while contributing to the economic success of New York’s communities. We appreciate the support of our endeavors and will continue placing students and health professionals across New York State.”

Executive Director of Primary Care Development Corporation Ronda Kotelchuck said: “We commend the Governor, the Assembly and the Senate for exhibiting strong commitment to primary care in one of the toughest budget years in New York’s history. While there were many challenges, the primary care investments in the budget were crucial to putting New York on the path to less costly, more patient-centered health care.”

Executive Director of the New York Chapter of the American College of Physicians Linda Lambert said: “The New York Chapter of the American College of Physicians congratulates the Governor and the Legislature for its courage and its vision – the emphasis on primary and preventive care, as demonstrated in this budget, is unprecedented – and a true sign of system reform that will benefit New Yorkers for many decades to come.”