NY healthcare advocates call on Gov. Hochul to close Medicaid funding gap

Feb. 9—BUFFALO — Niagara Falls Memorial Medical Center officials joined a coalition of state legislative leaders, joined by hospital and nursing home administrators and healthcare union leaders, issued an urgent plea Friday to Gov. Kathy Hochul to address what they called "New York's dire healthcare funding crisis."

The healthcare advocates urged Hochul to "fully fund" Medicaid health insurance reimbursements for hospitals and nursing homes. The advocates said funds from the state's "unprecedented reserves" could be used to save financially struggling hospitals and nursing homes and prevent cuts to critical healthcare services for low-income seniors, children, families and people with disabilities.

"Western New York hospitals and nursing homes struggle with some of the lowest Medicaid (reimbursement) rates in New York state that don't even come close to covering the cost of care," said Todd Hobler, 1199SEIU Executive Vice-President for Upstate/WNY. "Governor Hochul's budget not only fails to address this inequity but makes it worse by proposing cuts in healthcare funding."

Memorial Medical Center is among a growing group of upstate New York hospitals that struggle with Medicaid reimbursement rates.

"Medicaid typically pays 50%of costs compared to Medicare," Memorial President and CEO Joseph Ruffolo said Friday night. "If Medicare is reimbursing at a cost of $11,500, then Medicaid will pay about $5,500. You have many hospitals (upstate) that are closing down or shutting down critical programs because they aren't getting (high enough) reimbursements."

Ruffolo said that becomes critically important for facilities like Memorial, which are so-called "safety net hospitals." Safety net hospitals are medical facilities that have a legal obligation, or mission, to provide healthcare for individuals regardless of their insurance status or ability to pay.

In the past year, Eastern Niagara Hospital in Lockport abruptly closed, Mount St. Mary's Hospital in Lewiston transferred a number of healthcare services and some nursing homes have reported that they are on the brink of closure.

"We are the only remaining full-service hospital in Niagara County," Ruffolo said. "We're the only place for emergency surgery without going to (medical facilities in) Buffalo. We provide labor and delivery (services), otherwise, there'd be no more babies born in Niagara County. And with the number of high-risk pregnancies here, infant mortality would go up without Memorial."

More than 70% of the patients seeking care at Memorial are insured through either Medicare or Medicaid.

"It's time for New York State to make the right choice for the people of New York and prioritize the health and well-being of our communities, said Debora Hayes, area director, CWA District 1, a union representing nurses. "Closing the Medicaid gap and ensuring hospitals and healthcare workers have what they need to serve their patients is not just a necessity but a moral imperative."

Nearly two-thirds of New York hospitals are reportedly facing operating deficits. Ninety percent of nursing homes in Western New York report that they have Medicaid reimbursement rates that fall below the statewide average.

Because of its safety net status, Ruffolo said the state Health Department has been working with Memorial to provide "some enhanced Medicaid reimbursements" to help keep the medical center "financially stable."

"We encouraged," he said. "We're (financially) stable."

But Ruffolo agreed that without sufficient funding in the final state budget, many hospitals and nursing homes might not be able to invest in programs or infrastructure improvements that will benefit patients.

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