Updates the fee schedule for outpatient hospital services.

Increases payments to hospitals reimbursed under the State's Diagnostic-Related Group reimbursement method.

Updates the state psychiatric hospital reimbursement payment methodology to a prospective per diem rate for State owned psychiatric hospitals to eliminate the cost settlement process.

Adds Chiropractic services.

Updates the physicians and other practitioners' fee schedules and changes the reimbursement methodology for physician-administered drugs and biological products when a new national procedure code is assigned.

Outpatient supplemental payments Critical Access Hospital payments, Off-site clinics, Free-standing emergency centers.

Allows government-operated hospitals to opt out of the CPE program using specified criteria.

Purposes a temporary reduction of 1.1% to most nursing home rates for services both provided and paid between September 16, 2010 and March 31, 2011.

Reduces the annual number of bed reserve days paid to providers for residents over 21 years of age, reduces the reimbursement rate to 95% of the full daily rate for those days subject to the new limits and makes a technical correction to the definition of a bed reserve day.

Provides a temporary rate adjustment under NY's VAP program to Medicaid fee for service rates for certain Certified Home Health Agencies.