New York Safety Net Hospital Coalition Responds to the FY24 New York State Budget
The Coalition raises grave concerns that the FY 2024 Budget will deepen health inequalities, punishing the vulnerable communities and New Yorkers that safety net hospitals serve
New York, NY – Today, the New York Safety Net Hospital Coalition issued the following statement in response to the tentative framework deal reached on the FY 2024 Budget:
"It is unacceptable that the FY24 Budget fails to address healthcare inequity in New York and the mounting fiscal crisis paralyzing its safety net hospitals. Years of chronic underfunding due to a longstanding shortfall in Medicaid reimbursement rates have left us struggling to survive on shoestring budgets while adversely affecting the diverse, vulnerable New Yorkers communities we serve," said the New York Safety Net Hospital Coalition. "It is irresponsible not to invest $1.3B, alongside structural Medicaid reimbursement reform, in order to access over $2B in available federal funds that could stabilize safety net hospitals and ensure we can sustainably meet the needs of the communities we serve. This continued piecemeal approach will have immediate, far-reaching consequences on low-income New Yorkers and communities of color across the state who depend on these hospitals for care, further perpetuating New York's two-tier health care system."
The Coalition has called for the passage of Senator Gustavo Rivera's Health Equity Stabilization and Transformation Act, which, if enacted, would put safety net hospitals on a sustainable footing and end the State's two-tiered system of care. Specifically, the legislation would:
Expand on the State's existing Directed Payment Program for safety net hospitals, by extending eligibility to public hospitals that also serve high volumes of Medicaid and uninsured patients.
Tie Medicaid rates for safety net hospitals to regional average commercial rates to ensure access to adequate funding for inpatient and outpatient services. Enhanced rates will also enable hospitals to stabilize their operations, make necessary capital expenditures in their infrastructure, and invest in programs and services.
Better maximize the use of federal funding, by enabling the State to away shift from programs that rely on lower federal matching rates and State-only funding and provide enhanced Medicaid rates through the Directed Payment Program, which has a higher federal match.
Operationalize enhanced rates initially through managed care, with a long-term plan to include fee-for-service.
The Coalition's mission is to advance structural changes to address outdated Medicaid reimbursement rates and leverage a greater share of available federal Medicaid dollars for New York. In doing so, safety net hospitals can invest in themselves and be better equipped to provide care to their surrounding communities. Please visit our website for more information on the Coalition's fight for healthcare equity.
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About the New York Safety Net Hospital Coalition
The New York Safety Net Hospital Coalition was formed in 2021 in response to the urgent need for significant, structural reforms for safety net hospitals in New York. Coalition member hospitals serve high volumes of Medicaid and uninsured patients. The Coalition includes One Brooklyn Health (Kingsbrook Jewish Medical Center, Brookdale Hospital Medical Center, and Interfaith Medical Center), Maimonides Medical Center, Jamaica Hospital Medical Center, Flushing Hospital Medical Center, SBH Health System, St. John's Episcopal, Wyckoff Heights Medical Center, and NYC's Health + Hospitals System. Learn more and join our movement at: https://www.nysafetynets.org/