SFY 2024-25 Budget Provides Critical Health Care Funding to Hospitals and Long-Term Care Facilities

Speaker Carl Heastie and Health Committee Chair Amy Paulin today announced the enacted State Fiscal Year (SFY) 2024-25 Budget makes critical investments in health care services including $800 million in funding for financially distressed and safety-net hospitals and $350 million in funding for hospital rate increases. Additionally, the budget authorizes the Department of Health to apply for a federal waiver to establish an assessment on Managed Care Organizations (MCO) to leverage funding for capital healthcare projects and Medicaid coverage expansion.

“My colleagues and I have remained committed to providing high quality, affordable health care to all,” said Speaker Heastie. “This budget highlights our continued efforts to secure equitable access to our most vulnerable populations while providing our care facilities the support they need.”

“My Assembly Majority colleagues and I continue to believe health care is a right New Yorkers can’t live without,” said Assemblymember Paulin. “This year, we’ve continued our fight to ensure our hospitals and long-term care facilities have the funds needed to continue providing high-quality, affordable care to all New Yorkers.”

Investments in Hospitals

The SFY 2024-25 budget includes $800 million in funding for financially distressed and safety-net hospitals and $350 million for rate increases for hospitals and nursing homes.

The budget also forgives the State University of New York (SUNY) hospitals debt service payment for SFY 2024-25, saving them $79.1 million and modifies the $100 million for SUNY Downstate so that it is no longer subject to a transformation plan.

Managed Long Term Care Investments

The budget also rejects proposed cuts in worker wages and fully maintains wages for home care aides who perform Medicaid-reimbursed work, and shifts the Consumer Directed Personal Assistance Program (CDPAP) to a single fiscal intermediary to provide better oversight of the program with a focus on individual care.

Healthcare Stability Fund

The budget also includes the Assembly’s proposal for the Healthcare Stability Fund, establishing an assessment on MCO’s to generate additional funding for expanding investments in the Medicaid program.

Other Investments

Additional investments include:

• $19.9 million to expand access to primary care;
• $13.7 million to expand children access to health care;
• $8.1 million to expand mental health care;
• $5 million for maternal health grants;
• $3.8 million for School Based Health Centers;
• $1.25 million to restore funding for the Diversity in Medicine Program;
• $1.1 million for rural health care access development and rural health network development; and
• $1 million to restore funding to Family Planning Services.

Additional public health investments include:

• $23.3 million for the Hunger Prevention and Nutrition Assistance program;
• $7.2 million to relieve 300 high-need family caregivers through 120 paid days in respite care at Adult Care Facilities;
• $6.3 million to provide care teams at home for low-income older adults; and
• $4.25 million in additional funding for Nourish NY.

The enacted budget also allows children ages 0-6 to remain continuously enrolled in Medicaid or Child Health Plus regardless of changes in family income.