On Tuesday, February 10, the Joint Legislative Budget Hearing on Health and Medicaid convened. IHA submitted written testimony highlighting IHA’s core budget priorities, including strengthening hospital financial stability, addressing workforce shortages, reducing regulatory burden, and ensuring adequate state support to preserve access to care across Upstate New York. While IHA did not testify in person, our written testimony emphasized the disproportionate impact that Federal actions will have on Upstate and rural hospitals, and the State’s need to plan for the future to ensure viability. IHA also submitted suggested questions to members of the panel to ask the Department of Health, including the status of Statewide Transformation Dollars appropriated in previous budgets. IHA will continue to reinforce these priorities with legislators as we approach 30-day amendments to the Governor’s budget proposal.
62% of Upstate and rural hospitals operate below sustainable margins, and federal Medicaid cuts through H.R. 1 threaten to push more over the edge. Our written testimony focused on how New York State can help hospitals weather these federal policy changes and stressed the State’s critical need to plan for the future and ensure the viability of these anchor institutions serving vulnerable communities.
Key priorities outlined in the testimony include:
- Funding stability: Honor Healthcare Stability Fund commitments after the MCO tax sunsets and restore proposed VAPAP reductions that support financially distressed hospitals
- Workforce solutions: Support the temporary practice authorization, the Interstate Nurse Licensure Compact, and CRNA statutory recognition to address critical staffing shortages
- Regulatory relief: Exempt qualifying hospitals from Clinical Staffing Committee requirements and review outdated regulations
- Capital access: Expand funding opportunities beyond the Safety Net Transformation Program and release previously appropriated funds currently tied up in bureaucratic delays
- Drug pricing protections: Include 340B anti-discrimination language in the budget
As 30-day amendments approach, we’ll continue working with lawmakers to ensure the budget protects healthcare access across Upstate New York.