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The centers will continue to receive the bulk of state reimbursements for services deemed appropriate.
But it was disbanded two years ago after cuts in federal and state reimbursements.
After various state reimbursements, Long Island taxpayers paid a net local Medicaid share of $303 million in 2002, the last year for which comprehensive data is available.
Businesses in the zones can now qualify for sales tax exemptions, state reimbursements of local property taxes and business taxes, and savings on electricity and gas.
Medicaid costs would be cut by forcing hospitals to absorb rising costs, freezing state reimbursements to pharmacists and changing the way the state administers prescription drug benefits, forcing doctors to prescribe less expensive drugs.
Mr. Rendell did not, however, win legislative approval to end state reimbursements to hospitals for the treatment of infections and to test all hospital patients for drug-resistant bacteria.
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"That got us to above a 95percentt occupancy rate," said Mr. Gianelli, raising the state reimbursement rate.
Beyond the regulatory cases, Beverly and the entire industry, of course, face tremendous uncertainty about federal and state reimbursement policies.
Assemblyman Roger L. Green, a Brooklyn Democrat, pleaded guilty to petty larceny for accepting state reimbursement for travel expenses he did not incur.
He said local hospitals struggle because the state reimbursement rate for Medicaid is lower on the border than elsewhere.
Petiot finagled state reimbursement for unorthodox treatments, often double-dipping by charging patients too, and was implicated in narcotics dealing.
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