New York Safety Net Hospitals Launch Coalition Advocating for Capital Funding & Structural Reimbursement Reform
The Coalition Urges the State Legislature to Make New York’s Disparate Healthcare System More Affordable, Equitable, and Accessible
NEW YORK, NY (February 17, 2022) – Today, nine safety net hospitals that serve New York City’s historically marginalized neighborhoods announced the formation of the New York Safety Net Hospital Coalition. Together, the safety net hospitals advocate for immediate financial support and fundamental reform to the outdated Medicaid reimbursement rate system.
The nine Coalition member hospitals include Brooklyn Hospital Center, Brookdale Hospital Medical Center, Interfaith Medical Center, Maimonides Medical Center, Jamaica Hospital Medical Center, Flushing Hospital Medical Center, St. Barnabas Hospital, St. John’s Episcopal, and Wyckoff Heights Medical Center.
For decades, New York’s safety net hospitals have been shortchanged despite being significant care providers and economic engines in the city’s low-income communities. The neighborhoods served by community hospitals are home to more than 4.7 million New Yorkers, where 76% of the residents are people of color. On average, 45% of their patient base relies on Medicaid or is uninsured. As a result of regressive healthcare policies and longstanding inequities in how safety net hospitals are paid, Coalition members are struggling, and the communities they serve are suffering the consequences – many of which are formerly redlined neighborhoods most impacted by COVID-19.
In New York, Medicaid covers only 67 percent of costs for hospitals, and Medicaid rates fall well below those in Medicare’s fee-for-service program, which does not cover the cost of care. Additionally, chronic underfunding has reduced safety net hospitals’ ability to invest in their facilities – resulting in infrastructure that does not meet the current standards of medical care or respond to the social determinant health needs of their communities.
“We have come together to shine a light on the longstanding funding and reimbursement issue that affects our ability to deliver top-notch patient care to our diverse communities,” said LaRay Brown, CEO of One Brooklyn Health System. “We want to thrive, not just survive. As it stands, Medicaid rates and inequitable commercial insurance rates make it impossible to cover the cost of care. Chronic underfunding disadvantages already vulnerable populations while benefitting well-funded destination hospitals and the wealthy communities they serve.”
“Safety net hospitals serve all patients in need of care, which mostly includes the uninsured and the underinsured. But because of our dedication to the spirit of healthcare and commitment to doing what’s right, it is our hospitals that are on the brink of survival,” said Ramon Rodriguez, President & CEO at Wyckoff Heights Medical Center. “We need a Medicaid reimbursement system that provides an appropriate operating margin so we can meet the needs of our communities. The low-income communities we care for are comprised of mostly frontline workers who bore the brunt of this pandemic – they are just as deserving of modern, reliable healthcare as New Yorkers in more affluent parts of the city, and I welcome anyone to challenge that notion.”
“The time to act is now,” said David Perlstein CEO of SBH Health System. “Existing Medicaid rates and decades of disinvestment have led us to where we are today: a two-tiered system of medical haves and have nots amid the worst public health crisis in recent history. We’ve come together to right this historical wrong.”
Despite many improvements in the SFY 23 Executive Budget, it is critical to allocate additional funds to member hospitals immediately and fundamentally reform the Medicaid reimbursement system in order to meet the needs of the coalition and the communities in which they are located. These investments lead to the long-term stability of coalition members rather than near-term cash support intended to keep safety-net hospitals from closing. To achieve this goal, the coalition is calling on the Legislature to dedicate an additional $292.2 million in state funds for safety nets serving high volumes of Medicaid patients.
New York State voters overwhelmingly support the Coalition’s mission and view budget shortfalls of safety net hospitals to be a major problem, specifically:
80% of voters say that the state government should increase funding for safety-net hospitals;
By a margin of 84%-6%, voters support granting the state’s safety net hospitals additional Medicaid payments to close their annual budget shortfall;
By a margin of 82%-7%, voters support creating an investment program to provide New York safety-net hospitals with capital funding.
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About the New York Safety Net Hospital Coalition
The Coalition was formed in response to the urgent need for significant structural reforms for safety net hospitals in New York. The members of the Coalition serve historically marginalized neighborhoods, which are home to more than 4.7 million New Yorkers, where up to 76 percent of the residents are people of color. The Coalition is urging the New York State Legislature to advocate for adequate funding and a sustainable supplemental payment structure that transitions away from focusing on supporting the near-term cash needs across safety-net hospitals.