Precipitous Cuts Threaten Medicaid Inpatient Detox Services and Outpatient Mental Health Programs
On February 12, GNYHA members were in Albany to participate in Behavioral Health Advocacy Day, sponsored jointly by GNYHA and the Healthcare Association of New York State (HANYS). The day was designed to educate key legislators and staff who serve on the relevant health and behavioral health committees about the impact on hospitals of proposed payment cuts to Medicaid inpatient detoxification services and the elimination of specialty rates for certain outpatient mental health programs.

Detoxification Services: Legislators and their staff were informed about the Executive budget proposal to cut $35 million in funding to inpatient detoxification services, which translates into a $70 million cut to hospitals. Hospital representatives warned that an immediate cut of that magnitude, to be borne by a subset of NYS hospitals, will create significant financial hardship and jeopardize continuation of the service in some cases. GNYHA has worked in recent years with the Office of Alcohol and Substance Abuse Services to reform the detoxification delivery system, and providers have consistently noted the need for ambulatory program growth to decrease  reliance on costly inpatient detoxification services. The absence of investments in ambulatory detoxification program growth coupled with the potential closures of inpatient services will create access issues for individuals requiring detoxification. GNYHA advocated that such a significant change in reimbursement be phased in via the same manner as other reimbursement changes in order to maintain this necessary service.

Mental Health Specialty Rates: Certain Article 28 mental health clinics receive a specialty rate for continuing day and day-treatment programs offered by the hospital. This year's budget again proposes to eliminate this funding, resulting in cuts of over $4 million to nine hospitals across NYS. This cut has a significant financial implication for each of those hospitals and jeopardizes the continuation of these essential programs. Specialty rates cover the extended treatment hours and overhead costs associated with hospital-based services. Individuals with serious and persistent mental illness, in many cases, maintain community tenure by attending structured and supportive day treatment programs. GNYHA requested that legislators reject this cut at this time as the State continues focused efforts on reforming ambulatory mental health reimbursement. 

GNYHA Member Participation: Participating GNYHA member institutions included Bronx-Lebanon Hospital Center, Continuum Health Partners, John T. Mather Memorial Hospital, MediSys Health Network, NYC Health and Hospitals Corporation, NewYork-Presbyterian Hospital, North Shore-Long Island Jewish Health System, and St. John's Riverside Hospital. GNYHA appreciates their participation in this important event.