New York City residents can expect to pay an average of $7,000 more next year on their annual health insurance premiums after the state’s Department of Health & Hospitals announced it will cut the number of nursing homes and nursing-home units by 50% in 2018.

The state’s largest hospital system, St. Luke’s Medical Center, will see its capacity shrink from 5,200 to 5,000 beds as it closes.

The average new nursing home will see an increase of $1,200 and the average nursing home unit will see a decrease of $4,600, according to a statement from the state.

As a result, the state expects to save an average $6,400 next year in premiums.

“Our plan to reduce our workforce is consistent with the best interest of our residents and the State of New York, and this plan will provide a real benefit for all New Yorkers,” Governor Andrew Cuomo said in a statement.

“New York is committed to working with our partners to deliver the most affordable health care coverage in the state.”

The department’s announcement comes as many New Yorkers are considering moving away from their nursing homes or moving to smaller, cheaper, or private nursing homes.

Many of the city’s residents live in nursing homes, which provide short-term care and are often more affordable than traditional hospitals.

The department said it will increase the number and number of residential nursing homes by 1,600 by 2020 and increase the size of residential unit by 300 to 500 beds by 2021.

While the department said the move is a first step in helping to stabilize the system, the department added it will be working with the state to determine how best to manage the statewide crisis.

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