Health providers face huge cuts from New York governor's budget proposal

The Paterson administration has unveiled an austere New York state budget that would include 137 new or increased taxes and fees, loosened restrictions on gambling, and $9 billion worth of spending cuts. Medicaid spending would rise by about 1% under the plan, although the projected spending for hospitals, nursing homes and other healthcare providers would be cut by more than $1 billion. In a joint statement, George Gresham, the president of 1199 SEIU United Healthcare Workers East, and Kenneth E. Raske, president of the Greater New York Hospital Association, said, "Today is a dark day for healthcare in New York." They added "these are staggering cuts that would shatter New York’s healthcare infrastructure."