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Hochul appeals to laid off federal workers in DC train station ad
New York Gov. Kathy Hochul appealed to recently laid-off federal workers in a new ad posted inside Union Station in Washington, D.C.
- A provision in the proposed New York state budget would add a duplicative review process for healthcare transactions, potentially hindering innovation and investment in healthcare.
- This provision could harm small, independent physician practices already facing financial challenges, potentially leading to reduced access to care for vulnerable New Yorkers.
- The proposed review process lacks clear deadlines and could create bureaucratic delays, discouraging partnerships and advancements in healthcare delivery.
- Lawmakers should remove this burdensome provision from the budget to support a more robust and innovative healthcare system in New York.
As Gov. Kathy Hochul and legislative leaders head into “overtime” in state budget negotiations, attention has focused on their disagreement over a handful of policy proposals that prevented them from meeting the April 1 deadline.
But, of course, much more is at stake. And while a late budget is certainly not ideal, it also gives lawmakers an opportunity to fix an easily overlooked provision that threatens to undermine health care for countless vulnerable New Yorkers.
Buried in Part S of the Health and Mental Hygiene section of the executive budget proposal is an item with an innocuous-sounding title — “Reporting Requirements for Health Care Transactions.” Yet the implications are significant.
By adding a new unnecessary and duplicative review process on so-called “material transactions,” this provision could have far-reaching consequences for health care providers, startups and other companies that support health care delivery. It threatens to jeopardize the innovation and investment needed to provide high-quality, cost-effective care to all New Yorkers.
Those who rely on their private local caregivers and independent medical practices are likely to bear the brunt of this change, should it end up in the final budget deal. Many of these practices are already struggling due to an aging physician workforce, stagnant Medicaid reimbursements and similar challenges. With patient demand far outpacing staff capabilities, the system is at a breaking point.
Looming federal spending cuts could exacerbate the problems facing health care providers across the Empire State. The system relies on Medicaid revenue and federal Medicaid funding secured by the state’s Department of Health. The U.S. Department of Health and Human Services has already announced the cancellation of over $12 billion in federal grants to states, with more cuts expected.
This will have a major impact on health care funding in Albany, as Hochul’s budget relied on nearly $91 billion in federal funds and lawmakers have already admitted they’re likely going to have to return to the Capitol in the coming months to cut spending.
If local and independent physician practices fail, the consequences for patients could be catastrophic. These providers play a crucial role in providing accessible health care across the state. They address not only immediate health needs but also promote preventive care and wellness in communities that often lack other health care options.
In the face of current threats and the uncertain future, state leaders need to focus on steps that can be taken to shore up the system. Unfortunately, that is not happening. As Jared Walczak — vice president of state projects at the nonprofit policy group Tax Foundation — recently noted, “while lawmakers across the country are certainly keeping a wary eye on what’s happening in Washington, few of them seem to be fully preparing for it.”
The burdensome new regulatory reviews proposed under Part S of the HMH section aren’t preparation; they’re more like punishment. They impose overly broad reporting requirements for potential mergers and other business arrangements that could shore up local providers, while providing paltry details about the review process and failing to impose a deadline for the Department of Health to complete reviews. This could lead to endless or indefinite delays — a bureaucratic pocket veto that could limit opportunities for health care entities to make a difference in the communities that depend upon small independent physician practices.
The provision burdens health care entities by imposing a pointless and duplicative review process on health care transactions, which are already posted on a publicly available website.
Even worse, making it harder to negotiate partnerships with large health providers denies patients and practitioners the benefits of innovation and new technologies. These arrangements preserve community health while incorporating things we take for granted in every other part of life — from online check-ins to state-of-the art medical equipment.
All of this is a recipe for increasing uncertainty and decreasing investment in the state’s health care system at a time when it’s needed the most. Now that negotiations are officially in overtime, lawmakers should focus on getting the budget right and remove this burdensome and dangerous provision before it is too late.
Dr. David Eagle is president of the New York Independent Physician Practice Association.
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