NY number one in Medicaid spending, nowhere near that in quality of care

March 6, 8:36 AMNY Tech Industry ExaminerJeff Smith

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Deputy Secretary for Health and Human Joseph Baker released a memo Thursday supporting Governor Paterson’s Executive Budget to expand health care coverage, reduce costs, while providing better results for patients. The memo also addresses administration detractors regarding federal Medicaid reimbursement funds.

New York’s Medicaid system is the most expensive in the nation, costing over $2,280 per capita. According to the memo, New York ranks 30th in health care quality and 21st in the percentage of uninsured adults, and 39th in avoidable hospital use, despite spending more than twice the national average on Medicaid.

“New Yorkers deserve an honest, substantive discussion about why we have the most expensive Medicaid system in the country, but far too many in our State do not receive the quality health care they need,” Baker writes. “We are fortunate that our State already makes a substantial financial commitment to health care, but our challenge is directing that funding in a rational way that promotes high-quality, cost-effective care.”

Additionally, the memo addresses an issue that has been plaguing the Patterson administration in past weeks that form enhanced Medicaid reimbursements (FMAP) should only be directed towards Medicaid. Mr. Patterson and Mr. Baker believe FMAP reimbursements should be treated as general vehicles for fiscal relief. Mr. Baker says the lack of spending guidelines regarding Medicaid implies flexibility in how the funds are used.

“In some sections of the federal stimulus bill, such as transportation or education, Congress provided express instructions for how the funding they have provided must be spent. The absence of a similar provision regarding Medicaid speaks volumes,” he says in the memo.

In closing, Mr. Baker urges Kenneth Raske, president of the Greater New York Hospital Association, to engage in a public debate with Health Commissioner Dr. Richard Daines on the merits of the Governor’s proposed reforms, saying that New Yorkers need to have an honest and open discussion about why the state has the most expensive Medicaid system in the country, but lacks in the quality of care.

Cutting the Checks

Office of Mental Health contracts for pharmacy computer system

The New York State Office of Mental Health has awarded a contract to McKesson Information Solutions to maintain and operate a multi-facility, pharmacy computer system.

McKesson has worked with New York’s Office of Mental Health on a pharmacy computer system since 2004 and they’ve been paid nearly $3 million to operate and maintain the system, according to records.

McKesson Information Solutions is based in San Francisco and the company claims to be the nation’s oldest and largest health care services provider, “taking care forward for the health care industry for more than 175 years.”