New York Health Care Commission approves recommendations for financing changes

The New York Commission on Health Care Facilities in the 21st Century on Monday approved a list of policy recommendations that would change the way health care is financed in the state, the New York Times reports.

The commission said New York should change its Medicaid payment rates to favor hospitals that treat many uninsured and low-income patients, encourage development of outpatient clinics and other primary care facilities, discourage hospitals from engaging in a "medical arms race" for the latest device or service, and develop more options for primary care.

The commission also said health insurers should be required to invest a larger portion of their profits into the state's health insurance system.

According to the Times, the commission's recommendations "were given in very general terms and are really no more than suggestions to the Legislature" and Gov.-elect Eliot Spitzer (D).

The commission also called for the state to consider privatizing the State University of New York hospitals in Brooklyn, Stony Brook and Syracuse, as well as the 44 nursing homes that are owned by New York counties.

The commission next week is expected to release a final report with recommendations on a proposal to close several hospital and nursing homes in the state, according to the Times.

Under state law, recommendations in the report will become law unless they are wholly rejected by the governor or by both houses of the Legislature (Perez-Pena, New York Times, 11/21).