New York’s nursing home industry delivered a 33-page petition to Governor Kathy Hochul and members of the New York State Legislature on March 22 expressing support for a 20% increase in Medicaid funding for the State’s ailing nursing homes.
New York has not increased its Medicaid reimbursement rate to nursing homes in 15 years and leads the nation with the largest shortfall – approximately $55 per day – between its reimbursement to providers and the actual cost of providing care. Approximately 60,000 of New York’s nursing home residents rely on Medicaid exclusively.
Losses like this are unsustainable and have resulted in nursing homes reducing capacity and, in some cases, closing altogether. Since the last reimbursement increase, costs to care for Medicaid residents have increased 40%.
The consequences are felt throughout the healthcare system as hospitals have already experienced overcrowding when there are not sufficient nursing home beds available to accept discharges.
Governor Hochul proposed a 5% increase and the Legislature a 10% increase in its one-house budget bill. Those in the industry say those increases are inadequate for a sector of the healthcare system reeling from the effects of the pandemic, inflation, and increased labor costs.
“The State is attempting short-term fixes to stop the bleeding without proper recognition of the long-term problem of fiscal insolvency. Increasing the reimbursement rate to 20%, while insufficient in terms of costs, puts nursing home operators in a position to stabilize the industry,” said Stephen B. Hanse, Esq., President & CEO of New York State Health Facilities Association | New York State Center for Assisted Living, a statewide organization representing over 450 not-for profit, proprietary and government-sponsored skilled nursing and assisted living facilities.
Hanse continued, “Our leaders must proceed with a strategic approach in service of New York’s aging population and the providers and operators who support them.”
The more than 1,500 New Yorkers who signed the https://Change.org petition are directly affected by this Medicaid crisis and come from every corner of the state.
Provided information
