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Report criticizes N.Y. Medicaid payment system

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Modern Healthcare reports New York’s health commissioner released a highly critical look at how the state pays hospitals to care for Medicaid patients. The report, mandated in the state’s 2008 budget, said New York pays for too much for patients admitted to hospitals without regard for quality or efficiency. The poorly designed payments give hospitals an incentive to overlook more-economical settings such as clinics or to pursue more-profitable services. Reimbursement also fails to reward quality and efficiency, the report said.

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