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Cutting coverage for such drugs would save the state $14.9 million next year, Budget Director John Cape said.Advertisement Also under the plan, Medicaid reimbursements to hospitals and nursing homes would no longer be tied to inflation, saving the state more than $306 million.

A similar proposal was rejected by the Legislature last year."It’s another in a series of assaults on New York’s hospitals and nursing homes," said Bill Van Slyke, spokesman for the Healthcare Association of New York State.

The advocacy group, which represents virtually all hospitals and nursing homes in the state, estimates Pataki’s proposals could cost the industry up to $1 billion."We’re holding our breath to see the details of whatever might be in store for health-care providers," Van Slyke said.

"For some facilities, they may be holding their last breath."What's RelatedBudget calls for health-care spending cuts Health care headlines N.Y.

budget Local officials defend nursing-home need Accident leaves teen in a coma Regional business leaders optimistic Democratic foe of Clinton speaks in Oneonta Area Health Briefs Alderman: Road work to be less obtrusive The Pataki plan also increases emergency-room co-payments from $3 to $25 for low-income New Yorker...

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