Buffalo, N.Y. (WBEN) - Hospital and nursing home leaders were joined by a number of bipartisan state lawmakers on Friday at 1199SEIU United Healthcare Workers East's Buffalo headquarters to call on Gov. Kathy Hochul to fully fund Medicaid for hospitals and nursing home facilities across New York State.
Joining the likes of 1199SEIU, CWA Local 1168 and other local healthcare workers on Friday included State Senators Tim Kennedy (D), Sean Ryan (D) and Patrick Gallivan (R), as well as State Assembly Majority Leader Crystal Peoples-Stokes (D), Assemblyman Bill Conrad (D) and Assemblywoman Karen McMahon.
Medicaid is a crucial lifeline for many kids, seniors and people with disabilities across the state. Over 7 million New Yorkers rely on Medicaid for their healthcare, many in Western New York.
However, chronic underfunding of Medicaid can lead to:
- Hospital and nursing home closures;
- Dangerous staffing shortages;
- Service line closures;
- Cuts to mental health services and fewer overnight beds;
- Difficulty accessing health care services;
- Longer wait times in emergency rooms;
- Children and seniors being turned away from medical practices;
- Home care struggles to meet demand for services while the need for workers increase.
In addition, New York State is the only state without a system in place to adjust Medicaid rates relative to inflation.
That is why the call was put out to demand Gov. Hochul to fully fund Medicaid Health Insurance for hospitals and nursing homes to help provide critical care for not just the Western New York community, but also communities across the state.
"Healthcare is a fundamental right, and yet, millions of our fellow citizens are denied access to essential medical services due to financial barriers. This is not just a matter of economics. It's a matter of justice. Every person, regardless of their socioeconomic status, deserves the right to receive quality health care when they need it the most. That starts with fully funding our healthcare institutions," said Peter DeJesus, Western New York Area Labor Federation President. "Our nursing homes and hospitals for years have been forced to operate closer-and-closer to the brink of an unattainable financial situation that has weakened the safety net here in Western New York and across the state."
With an increase in Medicaid reimbursement rates, it will help cover the actual cost of providing care in hospitals and nursing homes. Fixing Medicaid underpayments will ensure hospitals and nursing homes can hire the staff they need, and residents of all ages can receive the care they need and deserve.
New York State’s underfunding of Medicaid contributes to poor health outcomes largely in the Black and Latino communities, particularly affecting low-income seniors, expectant mothers, young children from low-income families, and people with disabilities. Some 43% of children in the city of Buffalo live in poverty, many of whom rely on Medicaid health insurance for their care.
"Medicaid equity is not only about ensuring access to health care, it's about ensuring equality of opportunity. When individuals are burdened by untreated illnesses or medical debt, their ability to pursue education, employment, and overall well being is severely hindered. By providing equitable access to Medicaid, we empower individuals to live healthier, more productive lives, contributing to the betterment of our communities and society as a whole," DeJesus said.
"Furthermore, Medicaid equity is a matter of freedom. True freedom cannot exist when individuals are shackled by the chains of illness or financial insecurity. By guaranteeing equitable access to health care for all, we liberate individuals from the fear of bankruptcy due to medical expenses, allowing them to pursue their dreams and aspirations without fear of falling into poverty. In a nation founded on the principles of equality and liberty, it is our duty to ensure that every person has the opportunity to live a healthy and fulfilling life. That is the promise that is not being kept today."
When it comes to nursing homes, Medicaid only covers 76% of the cost of care, leaving the Medicaid Gap due to inadequate reimbursement rates currently at $1.6 billion. In Western New York, reimbursement rates are significantly lower than other parts of the state, leaving local nursing homes in immediate crisis.
Funding shortfalls in Medicaid have pushed a number of nursing homes to the brink, with 9-out-of-10 facilities in Upstate New York having Medicaid reimbursement rates below the statewide average.
Groups like 1199SEIU are asking Gov. Hochul to fix the ongoing nursing home crisis by:
- Increasing reimbursement rates by $44 per-resident per-day to address lowest rates;
- Funding and rebasing Medicaid reimbursement rates on a two-year cycle to correct significant regional disparities, and provide adequate funding that covers the cost of providing care;
- Improve the application process for the Vital Access Provider Assurance Program (VAPAP) and other funding for struggling nursing homes.
"Without adequate funding, nursing homes cannot provide workers with the equipment and supplies necessary to provide care for their residents. Without adequate funding, nursing homes cannot offer wage and benefit packages that recruit and retain workers to provide the quality and continuous care that our residents deserve. Instead, those workers that do remain dedicated to their residents face tremendous mental and physical strain day-after-day. And Gov. Hochul's proposed budget will continue to fail these workers and the residents that they care for," said Grace Bogdanove, 1199SEIU Vice President for Western New York Nursing Homes.
Meanwhile, for Western New York hospitals in Erie, Niagara, Cattaraugus, Chautauqua and Allegany counties, Medicaid pays 30% less than the actual costs of hospital care they deliver.
As a result, it puts severe financial strain on safety net hospitals serving some of the most vulnerable people, as well as the low income communities of the region.
Fully funding New York's Medicaid program will help stabilize safety net hospitals and reduce healthcare disparities.
According to 2022 Institutional Cost Reports except Uncompensated Care from 2019 Disproportionate Share Hospital (DSH) audits, uncompensated care costs for hospitals totaled:
- $5.2 billion in operating expenses
- $256 million in Medicaid losses
- $25.7 million in uninsured losses
What healthcare advocates are asking for in the State Budget Proposal is for Gov. Hochul to fully fund Medicaid, investing $6.8 billion over the next four years in an attempt to close the Medicaid coverage gap.
"Doing so will stabilize our health care system, and prevent further deterioration of our vital medical infrastructure, ensuring that our patients receive the quality care that they deserve. It's time that New York State lives up to its promise. It's time we have a budget that prioritizes the health and well being of our communities," said Cori Gambini, President of CWA Local 1168. "We, as healthcare workers, deserve better. Our patients deserve better, and our communities deserve better. I urge our state leaders to act swiftly and decisively to ensure that our hospitals receive the funding they need to provide the highest quality of care to all that need it. Together, we can ensure a healthier, safer future for all Western New Yorkers."
As a result of this underfunding, hospitals and nursing homes in New York continue to struggle financially more than in the rest of the U.S.— with nearly two-thirds of New York hospitals facing operating deficits. 99% of nursing homes in Western New York have Medicaid reimbursement rates that fall below the statewide average, compounding staffing shortages and pushing facilities to the financial brink.
Without sufficient funding in the Governor’s final budget, many hospitals and nursing homes cannot invest in programs or infrastructure that benefit patients and residents and communities they serve.
In addition, overcrowding in hospital emergency rooms and staffing issues in nursing homes are a real threat to the continuum of care for all patients and residents across the state.
"In my role in the Health Committee, I talk to people that focus on health throughout the state, and it's the same theme time and again, and time and again. And you wonder, I mean, it's all going to crash and burn. It's starting to," said Sen. Gallivan on Friday. "You see it in the workplace, you've heard some of the things today, but we've got people in hospitals that shouldn't be there, because they can't get into nursing homes because there's not enough of them. Doors have been closed, because we can't find enough people to work. The people working there, it's amazing that people still show up to work. You go into any of the hospitals and you look at the emergency rooms, there's lines out the door. How is it OK that somebody is waiting 12 hours to get in? How is it OK that people want to get into a nursing home and can't? And so on, and so on, and so on. I certainly get it, I'm glad everybody here gets it. It is not OK, and we shouldn't rest until we make it OK."
"What we need to do is we need to rectify that wrong and that injustice, and immediately put forward the funding that's necessary so that the healthcare heroes in our community can do their job effectively for the people that we love. That is what needs to happen," added Sen. Kennedy on Friday. "And while we're making sure that the Medicaid rate is to the level that it needs to be in our community, you know what else we need to do? We need to rebase that Medicaid rate to make sure there is no divide between Upstate and Downstate. We need to level the playing field across New York State."