Nursing Home Owner Calls for Urgent Reforms to Address New York State Medicaid Reimbursement Crisis

$810 million annual funding gap in NYS directly impacts 97,000 nursing home
residents and their care

ROCHESTER, N.Y., Dec. 18, 2023 /PRNewswire/ -- In response to a critical issue impacting the quality of care for older adults and individuals with disabilities in Upstate New York, Robert Hurlbut, a third generation owner of 11 nursing homes in the Rochester area, is on an urgent mission to call for reforms to New York State's nursing home Medicaid reimbursement policies.

President of Hurlbut Care Communities, Robert Hurlbut is a prominent member of an area-wide coalition of nursing home leaders who have joined forces with like-minded statewide organizations. They have issued a joint letter to Governor Kathy Hochul requesting a $510 million investment in the 2024-25 fiscal year, and a commitment to reform the system's methodology 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."

Despite a 40% increase in labor costs and a workforce shortage of 65,000 people, Upstate NY nursing homes have not seen a Medicaid reimbursement increase in 15 years except for a modest increase in 2022. The current reimbursement rate covers only 50-60% of actual costs, creating a substantial financial burden on the industry.

The need to 'right size' Medicaid reimbursement is essential to ensure that future funding keeps pace with inflation, Hurlbut notes. He points out that failing to meet annual costs, New York's Medicaid program adversely affects access to quality care. "The nursing home industry in Upstate New York is in serious trouble," he says, "and our elderly population—who deserve better—is suffering the consequences."

Additionally, since 2019, a reduction of 5,600 nursing home beds has posed challenges for those seeking quality care close to home, an important consideration for families and loved ones.

"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."

Media Contact: Amy Blum, Tipping Point
(585) 880-1698

SOURCE Hurlbut Care Communities