Providing Health Care with Stimulus Funds

Governor Paterson says the $11 billion New York is expecting in Medicaid funding through the federal stimulus package will help offset some, but not all, proposed cuts to the state's healthcare system.

At a forum in Manhattan on health care spending and reform, he says much of the stimulus money will go to outpatient clinics, and preventive medicine and primary care.

The Governor says the money will not go to the hospitals lobbying hard for it.

PATERSON: For the past few decades, there have been very generous reimbursements made to costly inpatient procedures and also to acute care only meager resources are given to primary care and public health.

REPORTER: Paterson and his top health aides would not spell out the specifics of what they're calling a "reform package."

The move reflects an ongoing and contentious shift in health care spending, started under Governor Spitzer.