The Civil Service Employees Association on Tuesday filed a lawsuit in New York State Supreme Court challenging the planned closing of public hospitals in Buffalo and Syracuse and in Schenectady County, the AP/New York Times reports. A New York commission in November 2006 recommended the closing or downsizing of about 20 small hospitals by mid-2008 (AP/New York Times, 3/28). The Berger Commission's recommendations took effect on Jan. 1, but no hospitals have been closed as of yet. Since January, representatives from six hospitals have filed lawsuits to prevent the commission's recommendations from being implemented. The lawsuits allege that the commission is illegal because it comprised unelected members and held meetings in secrecy. CSEA spokesperson Steve Madarasz on Monday said association lawyers likely will argue that an outside commission does not have the authority to overrule law regarding local government agencies. In addition, Madarasz said that the state Legislature "improperly delegated its authority" by not rejecting the commission's recommendations. CSEA is suing the state on behalf of four facilities: Erie County Medical Center, SUNY's Upstate Medical Center, Van Duyn nursing home in Syracuse and the Glendale nursing home in Scotia. According to the Albany Times Union, the suit "may be the biggest and most important since it represents the entrance of a major statewide organization into the battle." Paul Larrabee, a spokesperson for Gov. Eliot Spitzer (D), would not comment on the suit (Karlin, Albany Times Union, 3/27).

Budget Negotiations
In related news, Spitzer and state legislative leaders on Tuesday reached a tentative agreement to add at least $850 million to the governor's proposed fiscal year 2008 budget and restore some funding for hospitals and nursing homes, the New York Times reports (Hakim/Confessore, New York Times, 3/28). Under the agreement, more than $350 million of $1.3 billion in planned health care cuts would be restored, including funds that hospital and nursing home officials say they need to avoid personnel downsizing (Gormley, AP/Albany Times Union, 3/27). The agreement would restore most of an inflation adjustment to Medicaid payments that Spitzer had proposed freezing, people familiar with the agreement said. In addition, the agreement would allow a tax on hospitals to expire. Spitzer had proposed extending the tax (New York Times, 3/28). The agreement would include $1 billion in cuts and includes Spitzer's plan to significantly reduce annual Medicaid cost growth. The tentative deal must be approved by the state Assembly and state Senate and voted into budget bills by Saturday to meet the fiscal year budget deadline (AP/Albany Times Union, 3/27).

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