Hospitals: Don't kill Bush-Pataki program

WASHINGTON - Washington's new embrace of fiscal austerity could cost New York more than $1 billion for projects that have already been planned, approved and even begun.

At issue is a 2006 program cooked up by former President George W. Bush and then-Gov. George Pataki that aimed to spend $2.5 billion beefing up hospitals that serve Medicaid patients and the elderly.

But the five-year program, called the Federal-State Health Reform Partnership, expires Sept. 30 - and of 470 projects planned, 368 have not been finished.

So far, the feds have doled out only about $400 million of their $1.5 billion share, and if the work isn't done by the fall, the money essentially vanishes.

That would leave local hospitals high and dry, such as the Brooklyn Hospital Center, which is expecting $13 million for building a women's Health clinic.

"We've been alerted that the money we have been granted will be much less available - that is, we need to spend it on a much shorter time line," said hospital CEO Richard Becker.

Designing and expanding the clinic - including $8 million largely for radiological services such as mammograms - is not likely to get done in eight months.

"In Brooklyn, like in a lot of other areas, women have to wait a very, very long time for a routine mammogram," Becker said. "This would help us shorten that wait. Without that money, we can't build that radiology clinic."

Lawmakers say a big part of the problem is bureaucracy, arguing local institutions often have to front the cash.

"You have to spend the money first, then you're reimbursed, based on you showing you spent the money," Becker explained.

The process was meant to guard against fraud and waste. But because it's been so difficult, legislators are appealing to President Obama's budget chief, Jacob Lew, and Health and Human Services Secretary Kathleen Sebelius for a three-year extension.

"This agreement has resulted in greater oversight and accountability. It has saved taxpayer money and improved care for millions of New Yorkers," said Sen. Kirsten Gillibrand (D-N.Y.), who was planning to send a letter to the federal officials today, signed by a bipartisan roster of 22 lawmakers.

Besides expanding capacity, the program tries to reduce long-term costs, such as moving older patients out of nursing homes into cheaper supportive housing.

Officials says extending the program won't cost extra money, because the funds have already been set aside. But with growing pressure to trim budgets, letting such an effort die could be an easy way to save cash.

Gillibrand argues that would be shortsighted.

"These are exactly the kind of solutions we need right now. It is common sense," she said.

mmcauliff@nydailynews.com