Final New York State FY 2017-18 Budget Includes Increased Capital and Working Capital Funding for Community-Based Providers The New York State FY 2017-18 budget was enacted on Sunday, April 9th, after the Governor and Legislature came to agreement on several outstanding issues. The final budget bill includes $54.4M in indigent care funding and $500M in Health Care Facility Transformation Funding (HCFTF), a minimum of $75M of which has been earmarked for community-based providers—twice as much as was first proposed in the Governor’s Budget proposal. The budget language specifies that:
Awards from the first round of Transformation Funding will be announced by May 1, 2017;
Up to $300M of the $500M HCFTF will be used to fund those applicants that did not receive an award in the first round of funding;
A new RFA for the remaining funds will drafted and reflect “legislative, community and stakeholder input.”
Thanks so much to all of you who participated in Advocacy Day, met with your legislators, and took action to urge the State to support the needs of community-based providers. The increase in HCFTF funding available for health centers and other community-based providers is a direct reflection of your hard work and commitment. Click here for a summary of health-related highlights prepared by Brown & Weinraub, PLLC. The final appropriations matrix is available here, and the final HMH Article VII matrix is available here.
Senate and Assembly One House Bills Released The Assembly and Senate released their budget responses to the Governor’s budget proposal - known as one house bills – on Monday, March 13. CHCANYS is still reviewing the bills and will provide a more detailed summary soon; in the meantime, please note the following hightlights:
Indigent Care Funding Neither the Assembly nor the Senate included the additional $20M for indigent care funding in their one house bill. Since the funding is not included in any version of the budget proposals, it will be very difficult to secure its inclusion in the final version of the budget.
Health Care Facility Transformation Fund The Assembly increased the funding for the Health Care Facility Transformation Fund to $700M (up from the $500M proposed by the Governor) and increased the set-aside for community-based providers to $125M. The Senate increased the funding for the Health Care Facility Transformation Fund to $800M but did not set aside any funds for community-based providers, nor did they include any of the language included in the Governor’s proposal outlining how the funds are to be appropriated. We expect that the total amount of funds and how they are distributed will be subject of negotiation in the coming days.
School-Based Health Centers Both the Senate and the Assembly rejected the Governor’s proposal to pool funding for many public health programs, including school-based health centers, and restored the funding to line items. The Assembly included language to maintain the carve-out from managed care for school-based health centers.
Click below to view matrices prepared by Brown & Weinraub, PLLC:
CHCANYS Testifies at Joint Legislative Hearing on NYS 2017-18 Budget CHCANYS Assistant Director of Policy Lacey Clarke testified at a joint Senate Finance and Assembly Ways and Means Legislative Hearing on the health and Medicaid sections of the 2017-18 New York State Executive Budget on Thursday, February 16. During her presentation, Ms.Clarke highlighted the need for a $20M increase in indigent care funding for FQHCs and other safety net providers, many of whom may be forced to reduce staff, eliminate expansion plans and/or limit access to services without it. Ms. Clarke also talked about the central role played by FQHCs and other community-based providers in the State’s ongoing health system transformation efforts and asked that a minimum of 25% of the $500M allocated to the Health Care Facility Transformation Program be earmarked for community-based providers to enable them to participate meaningfully in reform initiatives. A copy of her testimony is available here. To read CHCANYS' press release, click here.
New York SFY 2017-18 Executive Budget Proposal: Health Care Highlights New York State Governor Andrew Cuomo recently released his Executive Budget proposal for the 2017-18 fiscal year, which begins on April 1. This year’s proposal is lean, with generally flat funding. Despite the Governor’s claim that there were no cuts to Medicaid, there do appear to be cuts. The Department of Health’s budget was about $400M less than last year, and CHCANYS has reached out to the Department of Budget and the Governor’s office for further clarification regarding appropriations that have historically been included in the budget and do not appear to be included this year. With a flat or reduced budget, there are not a lot of new programs.
CHCANYS budget advocacy efforts this year will be focused on increasing indigent care funding by $20M, securing proportional capital funding for community-based providers, and protecting existing health center funding streams. Your participation on Advocacy Day and throughout the budget process will be critical to advancing these priorities.
Specific items in the Governor’s budget of relevance to health centers include:
$54.4M in state funding for the Diagnostic and Treatment Center (DTC) Indigent Care Pool (the same funding level as FY16-17)
$30M for community-based providers as part of the $500M Health Care Facility Transformation Program (the funding level for community-based providers is the same as FY16-17, although the total pool amount increased from $200M to $500M)
Language that permits the State to make changes to Medicaid appropriations and Health Care Reform Act (HCRA) appropriations if federal financial participation or amounts received are less than projected, including due to federal changes, such as repeal of the ACA or Medicaid block granting.
$406K in funding for Migrant Farmworkers (the same funding level as FY16-17)
Funding for Workforce programs, including a $2M increase in funding for Doctors Across New York
Block grants for certain public health programs with a 20% reduction in funding: Disease Prevention and Control: $33,365,000 Maternal and Child Health Care Program: $26,755,000 Health Workforce: $33,713,000 Health Access and Advocacy: $4,524,000
No language on Limited Service Clinics. Unlike in previous years, there is no proposal to authorize the Department of Health to regulate “minute clinics.”
For more detailed Executive Budget coverage:
An expanded summary of Health and Mental Hygiene-related budget highlights is available here.
A list of notable items from the appropriations bills is available here.
A matrix showing selected Health and Mental Hygiene-related provisions from HMH Article VII of the Executive Budget is available here.
State of the State 2017 Governor Cuomo delivered his 2017 State of the State message last week via a series of regional addresses that took place in various locations across New York. Click here to view this year’s signature proposals.