NYC Public Healthcare Cuts $300 Million

NEW YORK, May 25 (UPI) — New York’s public healthcare system restructuring and cost containment plan will generate $300 million in savings and efficiencies, officials say.

Deputy Mayor Linda Gibbs says the $300 million is in addition to earlier savings implemented during the past two years due to reduced state and federal Medicaid funding, a large increase in uninsured patients and rising pension and healthcare costs.


The four-year plan reduces costs, consolidates programs, hires independent contractors and closes some clinics with low-patient volume, officials said.

In the last year, some 1,300 members of staff of New York’s public healthcare system were dropped by attrition. Once the four-year restructuring and cost containment plan is fully implemented, the workforce is scheduled to be reduced by 3,700 — nearly 10 percent.

However, in fiscal year 2011, there will be a workforce reduction of 1,000 positions in a combination of layoffs and attrition, the officials said.

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