NY Nursing Homes Face Crisis Amid State Budget Dispute over Medicaid Funding

The ongoing state budget dispute in Albany could impact your family members in need of long-term care or nursing home services now or in the future. With the budget deadline nearing, there is a push to expand Medicaid spending in New York to avoid a crisis. The state Senate and Assembly are proposing a 10% increase to Medicaid, opposing the governor’s goal of finding “savings.”

Some experts warn that potential cuts may disproportionately affect smaller nursing homes, particularly those in Upstate New York, as Medicaid rates are already lower compared to downstate facilities and often do not cover the full cost of care. Healthcare workers are calling for an increase in Medicaid funding to prevent strains on the system.

Advocates suggest transitioning from a percentage-based increase model to a flat amount per patient to create a fairer system for both large and small facilities. This approach, as proposed by Elemental Management Group President Joseph Murabito, would help sustain the neediest facilities while still offering support across the board.

According to the proposal, distributing funds with a flat dollar amount would equate to approximately $27 per patient. The state budget deadline is set for April 1st.

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