E.B. SOLOMONT

Hospitals Facing $1 Billion Medicaid Funding Loss

By E.B. SOLOMONT, Staff Reporter of the Sun | May 13, 2008

New York City’s public and private hospitals stand to lose more than $1 billion in funding under proposed changes to federal Medicaid regulations, according to a new report by the city’s Independent Budget Office. If the changes are approved, the city’s private hospitals stand to lose $790 million in federal and state Medicaid funding, according to the report, which was published today. The city’s public hospital system, the Health and Hospitals Corp., would lose $390 million, or about 7.5% of the system’s annual budget.