Analysis of Current Budget Proposals to Stabilize
Financially Distressed Hospitals

March 15, 2024

In the following Report former NYS Director of Budget Paul Francis analyzes current proposals to stabilize financially distressed hospitals, to include a recently proposed ‘MCO Tax’ that would first require federal waiver approval and (if approved) could leverage some $4B in additional federal financial participation for Medicaid rate increases for certain provider types.    

Note:  This is a deep dive into hospital financing, current issues facing distressed hospitals, state spending trends and potential solutions proposed by impacted stakeholder groups and (more recently) the Assembly and Senate in their respective one-house budget bills.

By Paul Francis

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An Analysis of the FY 25 Executive Budget and Legislative Proposals for Financially Distressed HospitalsBy Paul Francis, Step 2 Policy Project, 3/14