2009-05-08 / Top Stories

Patterson Secures Health Care Funding

Governor David A. Paterson today announced that New York State will provide $175 million in new funding to further the restructuring of New York's health care system. This funding, provided under the State's Health Care Efficiency and Affordability Law (HEAL NY), will help hospitals transition to a new model of care through the consolidation of excess hospital beds and the support of more outpatient care, furthering the Governor's primary and preventive health care agenda.

"The historic reforms in this year's and last year's State budgets will create a more efficient and affordable health care system that provides New Yorkers with access to the kinds of services that keep them healthy," said Governor Paterson. "The funding announced today will not only help hospitals make the necessary changes to meet today's greater demands for outpatient services, but will further position New York State towards providing greater access to primary and preventive health care."

HEAL NY Phase 11 grants will fund projects to enable hospitals to enter into mergers, shared governance agreements, and other collaborative arrangements that will reduce excess beds, eliminate duplicative services, and support ambulatory and outpatient services that address identified health care needs in local communities and avoid hospitalizations for conditions generally considered preventable with good access to primary care.

New York State Department of Health (DOH) Commissioner Richard F. Daines, M.D. said: "Together with the Medicaid reforms enacted in this year's budget, this round of HEAL NY grants will assist in reducing costly inpatient care in favor of more appropriate outpatient care. This will help hospitals to operate more efficiently and maintain their role as vital institutions in our communities."

Senator Thomas K. Duane said: "Our stated goal in this year's budget was to shift resources into primary and preventive care, and to move health care in New York State toward a more community-based model. This funding, which is largely targeted to strengthening the primary care infrastructure, is an important step forward toward achieving that goal."

Like other HEAL NY grants, awards made under this solicitation will further the work of the Commission on Health Care Facilities in the 21st Century (Berger Commission) in promoting greater efficiency in the health care system.

Applications for Phase 11 of HEAL NY are due on July 1. HEAL NY funds will support the costs of restructuring, including construction, renovation and equipment, as well as legal and planning costs for the organizational changes necessary to effect the mergers, shared services agreements, and other collaborative arrangements eligible for funding under this request.

A conference for potential HEAL NY Phase 11 applicants will be held on May 15 from 1:00 p.m. to 3:00 p. m. in Meeting Room 6 in the Empire State Plaza in Albany. The Request for Grant Applications can be viewed by going to the DOH's website at www.nyhealth.gov.

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