Urgent Call for Medicaid Reform: Upstate NY Nursing Home Crisis Demands Immediate Attention

Robert Hurlbut, a third-generation owner of 11 nursing homes, calls for urgent reforms to address the New York State Medicaid reimbursement crisis, according to a news release.

As the President of Hurlbut Care Communities, Hurlbut united with other local nursing home leaders and statewide organizations to address the significant underfunding of nursing homes in Upstate New York. They have sent a collective letter to Governor Kathy Hochul, requesting a $510 million investment in the next fiscal year and a change in the reimbursement system by 2025.

"Our request is crucial to address the $810 million annual state funding gap, which directly impacts 97,000 nursing home residents statewide," emphasized Hurlbut. "This gap, in turn, contributes to more congested hospitals, a shortage of beds, and negatively impacts our already overwhelmed emergency departments."

Upstate NY nursing homes face a challenge with a 40% rise in labor costs and a shortage of 65,000 workers. Despite these difficulties, Medicaid reimbursement rates have remained unchanged for the last 15 years, with only a slight increase expected in 2022. As a result, the current reimbursement rate covers only 50-60% of the actual costs, putting a significant financial burden on the industry.

There has been a reduction of 5,600 nursing home beds since 2019, making it difficult for people to find quality care nearby. This has had a negative impact on families and the elderly population. Hurlbut stresses the importance of "right sizing" Medicaid reimbursements to match inflation and enable access to quality care.

"Enough is enough," said Hurlbut. "I appeal to Governor Hochul for immediate action on these critical issues. Reforms to Medicaid reimbursement policies are essential to ensuring access to quality care and supporting our aging population."

Reference

Hurlbut Care Communities. Nursing home owner calls for urgent reforms to address New York state Medicaid reimbursement crisis. News release. PR Newswire. Published December 18, 2023. Accessed January 30, 2024. https://www.prnewswire.com/news-releases/nursing-home-owner-calls-for-urgent-reforms-to-address-new-york-state-medicaid-reimbursement-crisis-302018020.html