Dive Brief:
- A large number of New York hospitals have filed project proposals with the state Department of Health hoping to get their share of the $8 billion in federal money earmarked to be spent on health care initiatives over the next five years.
- The money comes from savings from recent Medicare reform. Nearly 75% of the funds are set to be spent on efforts to cut back on unnecessary hospital use in the state.
- The health systems which are selected will become the regional Performing Providers System, which will decide how the funds get spent.
Dive Insight:
It's likely that hospitals will compete vigorously for these funds, which should have an impact on admitting patterns. That being said, hospitals may struggle with the results of this effort, as they are already hurting from ongoing reductions in inpatient volumes. It seems likely that they're going to have to look at business models that offer richer and more profitable outpatient care options if they get on board with programs that cut down inpatient stays further.