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An Option for the State to Maximize Federal Funding for Safety Net Hospitals with Inpatient Psychiatric Units | Rockefeller Institute of Government
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An Option for the State to Maximize Federal Funding for Safety Net Hospitals with Inpatient Psychiatric Units | Rockefeller Institute of Government

  • New York weighs a state-directed payment template to boost inpatient psychiatric beds at safety-net and voluntary hospitals amid federal funding cuts.
  • The analysis highlights CMS guidance on state-directed payments limited to 100 percent of Medicare, shaping potential funding strategies.
  • The piece notes ongoing state investments in mental health, including billions in capital and capacity increases through 2026.
  • The analysis identifies overlap between distressed hospitals and voluntary inpatient psychiatric capacity as a key consideration.
  • A potential approach targets a subset of hospitals like One Brooklyn Health and Maimonides as part of funding strategies.
  • The report emphasizes community and hospital psychiatry as complements, not substitutes, to address bed capacity needs.
  • Historical shifts aimed at deinstitutionalization have influenced current inpatient capacity planning.
  • The funding discussion frames safety-net hospitals as critical to preserving access for uninsured and low-income New Yorkers.
  • The article frames the One Big Beautiful Bill Act (OBBBA) and related actions as affecting federal funding for New York health providers.
  • CMS guidance and state health department coordination are presented as crucial to implementing any DPT strategy.
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