Last Thursday, Gov. Cuomo announced that the state has reached an agreement “in principle” with the federal government for an $8 billion Medicaid waiver to allow New York to reinvest $8 billion in Medicaid savings back into the state’s health care system.
The money will go towards revamping or replacing financially ailing hospitals and modernizing an outdated healthcare system. The funds will be released to the state over a five year period, and are conditioned on the reduction of inpatient hospital beds by 25%.
Gov. Cuomo said:
“While the State will be reviewing the terms and conditions of this agreement, it is clearly the biggest step forward towards a positive conclusion for our communities, particularly in Brooklyn, that have suffered from diminishing health care services. Securing this waiver will address those needs, allowing us to increase access and improve the quality of care for New Yorkers while making New York’s health care system a model for the entire nation.