Advocacy Update
The 2026 legislative session has been busy and already brought some important progress on long-standing priorities, alongside significant threats that we are continuing to monitor, particularly on the federal side. Here is where things stand:
Kicking Off the Session: Press Conference and Advocacy Day
IHA opened the 2026 legislative session by co-hosting our fourth annual joint press conference at the New York State Capitol alongside the Upstate Democratic Delegation on January 28th. With 62% of Upstate and rural hospitals operating below the 3% margin benchmark – and federal funding cuts from H.R. 1 casting a long shadow – the press conference served as an urgent call to action: do no harm to hospitals already stretched to their limits. The event drew significant media attention and reinforced that healthcare access in Upstate New York is not just a health issue, it is an economic and community stability issue.
Building on that momentum, IHA held its annual Advocacy Day on February 4th, bringing hospital leaders directly to the Capitol to meet with legislators, health and finance committee leadership, and senior administration officials. We are grateful to all who participated and made their voices heard.
IHA Submits Written Testimony at Joint Legislative Budget Hearing
For the Joint Legislative Budget Hearing on Health and Medicaid, IHA submitted written testimony on behalf of our member hospitals. The testimony addressed the compounding fiscal pressures facing our Upstate and rural hospitals: a multi-billion-dollar state budget gap, the looming sunset of the MCO tax, and the threat of nearly a trillion in federal Medicaid cuts through H.R. 1. IHA called on state leaders to honor commitments made through the Healthcare Stability Fund, protect the 340B Drug Pricing Program, and advance no-cost legislative solutions that would meaningfully expand workforce flexibility. IHA’s full written testimony is available here.
2026 Legislative Priorities
IHA entered the 2026 session with a clear set of priorities shaped directly by member input: protecting the 340B Drug Pricing Program, expanding workforce flexibility, securing operating support for financially distressed hospitals, advancing OMIG reform, and preserving critical Medicaid funding streams. These priorities have guided every meeting, every testimony, and every conversation with the Executive Chamber and Legislature this season.
Workforce remains an urgent, defining challenge. With an Upstate nurse vacancy rate of 10.5% and turnover at 16.3%, IHA has pressed hard for the Interstate Nurse Licensure Compact, Temporary Practice Authorization, and scope-of-practice modernization – practical, low-cost solutions that could meaningfully expand the available workforce. While neither chamber advanced the broader scope-of-practice expansions IHA advocated for, including CRNA recognition and PA modernization, we will continue to push for these reforms as negotiations proceed.
340B Advocacy Day
IHA participated in a joint 340B advocacy day, alongside HANYS and CHCANYS mobilizing member hospital leaders to make the case directly to legislators for passage of the 340B Anti-Discrimination Act (S.1913 / A.6222). Participants met with key senators, assembly members, and health committee leadership to share the real-world impact of pharmaceutical manufacturer restrictions on contract pharmacy participation – and to press for New York to join the more than 20 states that have already enacted similar protections.
340B revenue losses directly threaten critical healthcare services like oncology, behavioral health, maternity care, and more – that Upstate communities depend on. The Senate one-house budget includes 340B protections as a direct result of this sustained advocacy. IHA will continue to work to ensure these protections are included in the final enacted budget.
IHA in the News
IHA’s advocacy has been generating significant media coverage this season, helping to amplify the voices of our member hospitals in the public conversation about healthcare policy. Here is a look at recent placements:
Empire Report Op-Ed: Making the Case for 340B – IHA President and CEO Kevin Kerwin authored an op-ed published in Empire Report New York making the case for the 340B Anti-Discrimination Act and the critical role the program plays in sustaining healthcare access across Upstate New York. The piece highlighted how hospitals like Nathan Littauer in Fulton County and Guthrie Cortland Medical Center rely on 340B savings to fund maternity care, behavioral health, emergency services, and chronic disease management for patients with nowhere else to turn – and called on state policymakers to act now. We encourage members to share the op-ed widely with their legislative contacts and community stakeholders. Read the full op-ed here.
Buffalo News – New York’s $212 Million Rural Health Investment: IHA President and CEO Kevin Kerwin was featured prominently in a Buffalo News piece examining what New York’s first-year award of $212 million under the federal Rural Health Transformation Program means – and doesn’t mean – for the rural hospitals our members operate. Kevin offered a frank assessment: while the funding can help, particularly around workforce initiatives and technology, it is “certainly not going to overcome the cuts” from H.R. 1. He also noted concern about ensuring these dollars reach truly rural providers who need them most and sent a letter directly to Governor Hochul urging the state to hold the line on its own healthcare commitments in the FY 2027 budget. Read full article here.
WNYT News Channel 13 – Upstate, Rural Hospitals Call for State Action as Federal Cuts Threaten Care: WNYT News Channel 13 covered Iroquois Healthcare Alliance’s recent advocacy alongside state lawmakers, highlighting growing financial pressures on Upstate and rural hospitals due to proposed federal Medicaid cuts and state budget constraints. IHA emphasized the urgent need to protect existing supports—such as the Healthcare Stability Fund, 340B protections, workforce flexibility, and regulatory relief—to preserve access to care and sustain local economies across rural New York. Read full article here.
Daily Gazette – 340B Revenue Erosion: The Daily Gazette covered the severe financial toll that 340B Drug Pricing Program restrictions are taking on Upstate hospitals, with some members seeing revenue drops of up to 75% since 2019. The article – coordinated through IHA’s January press conference – highlighted the experiences of Ellis Hospital and Nathan Littauer and put a spotlight on IHA’s push for the 340B Anti-Discrimination Act. With 62% of Upstate and rural hospitals already operating below sustainable margins, the stakes of inaction are high. Read full article here.
CBS 6 Albany – Hospitals Urge Lawmakers to Bolster Budget Safeguards: News Channel 6 interviewed Kevin Kerwin following IHA’s press release calling on the Legislature to protect Upstate and rural hospitals in the state budget. Kevin described the situation facing hospitals as holding on “by their fingertips,” and warned that a proposed $520 million cut to the Vital Access Provider Assurance Program (VAPAP) could push more hospitals to the financial brink. The piece aired as budget conference negotiations were getting underway, helping keep hospital funding in the public spotlight at a critical moment. Read full article here.
Capitol Pressroom: Kevin Kerwin joined David Lombardo for an interview on Capitol Pressroom to discuss IHA’s advocacy priorities, the state budget, and the ongoing threat of federal Medicaid cuts to Upstate and rural hospitals. These media opportunities are an important part of IHA’s communications strategy, and we will continue to pursue every platform available to make the case for our hospitals and the communities they serve. Listen to the full interview here.
Webinar Resources: Recordings Available
IHA hosted two important webinars this season to keep members informed and prepared. Recordings and slides from both are available for members who were unable to attend live, and we encourage you to share these resources with colleagues at your organization.
Trapped at Work Act – What Hospitals Need to Know (with Bond, Schoeneck & King): IHA partnered with Bond, Schoeneck & King to provide members with a detailed overview of the Trapped at Work Act (S.4070 / A.584), its potential operational implications, and guidance on how hospitals can prepare. Access the recording and slides: Recording | Slides
IHA’s advocacy is most powerful when it reflects the collective strength and commitment of our entire membership. We thank all our member hospitals and executives who participated in these efforts this winter. As budget negotiations reach their final stages, IHA will keep you updated as developments unfold.
Questions? Contact Lauren Ford, Vice President, Government Relations and Strategy, at [email protected] or (518) 348-7440.