MODERNIZING OF 4 HOSPITALS IN CITY IS DELAYED BY A STATE COST SQUEEZE
Four of New York City's largest and most prestigious private nonprofit hospitals are asking the state this year to approve renovation costs of more than $1.5 billion for buildings they say are obsolete after decades of neglect. But state health officials are holding back their approval of those projects and others, totaling $2.2 billion all together, because paying for such construction could raise the cost of health care in the state by 3 or 4 percent, about $300 million a year. It is because the hospitals' individual reimbursement rates for patient care are set by the state and include the costs of capital construction -essentially passing them through - that the state is involved in approving the renovation projects. 'Buy What You Can Afford' While hospital officials argue that every year lost in contemplation of the projects means millions of dollars in inflationrelated costs, the state has created several blue-ribbon study panels and will not be rushed. ''You don't go out and buy a Cadillac today because it's going to be more expensive tomorrow - you buy what you can afford,'' said Dr. David Axelrod, the State Health Commissioner. ''I think there's a real question whether we can go out and build all of these projects at the same time.''