BILL NUMBER:  S4803

 TITLE OF BILL :  An act to amend the public health law, in relation
to reimbursement rates for inpatient hospital services at Westchester
medical center

 PURPOSE OR GENERAL IDEA OF BILL :  To provide revenue to Westchester
County Health Care Corporation through the adjustment of its Medicaid
rate.

 SUMMARY OF SPECIFIC PROVISIONS :  Section 1 of the bill provides
technical changes to the public health law regarding the computation
of reimbursement rates for Westchester Medical Center.

Section 2 is the effective date.

 JUSTIFICATION :  The Westchester County Health Care Corporation was
created under the public authorities law, and in January of 1998,
assumed responsibility for the operation of Westchester Medical Center
(WMC), a general hospital licensed under Article 28 of the public
health law, which previously had been operated by Westchester County.
WMC operates 635 licensed inpatient beds, and was established to serve
as the regional referral center providing tertiary services to the
seven-county Hudson Valley region.

WMC operates the only Level 1 trauma center, Level IV Neonatal ICU,
              

Children's Hospital, transplant center and burn unit in the region and
is the only academic medical center between New York City and Albany.
In its report, the Commission on Healthcare Facilities in the 21st
Century recognized WMC as a critically needed safety net hospital.
During its over ten years of existence as a free standing hospital
operated by a public benefit corporation, WMC has not been adequately
reimbursed, but has continued to provide care to Medicaid and other
indigent patients.

The lack of adequate reimbursement resulted from the decision to place
WMC in the Academic Medical Center Peer group for hospital
reimbursement rather than the Major Public Hospital peer group. The
resulting shortfall has resulted in significant financial strains at
WMC, and was recognized by the Legislature when it passed special
legislation in 2006 that provided $25 million per year for three years
in added Medicaid reimbursement to WMC. It was expected that during
that three year period of time, a permanent solution to the shortfall
would be identified, however this did not happen. This legislation
provides for calculation of WMCs Medicaid rate based on the group
average of the Major Public Hospital peer group.

The bill does not change the calculation of the group average for any
peer group. It simply seeks to provide WMC with an appropriate level
of reimbursement, taking into consideration the fact that WMC has been
reimbursed inadequately for its entire existence as a public benefit
corporation.

 LEGISLATIVE HISTORY : 2009 - New Bill

 FISCAL IMPLICATIONS :  The Medicaid rate adjustment will direct
approximately $11 million to the Westchester County Health Care
Corporation's Westchester Medical Center annually.

 EFFECTIVE DATE :  This act shall take effect immediately.