SBU Works with Rep. LaLota to Introduce Save Our Safety-Net Hospitals Act

Rep. Nick LaLota and Carol Gomes on Capitol Hill in Washington, DC.

In close partnership with the Healthcare Association of New York State (HANYS), Stony Brook University's Office for Federal Relations worked with Rep. Nick LaLota to introduce the Save Our Safety-Net Hospitals Act. This crucial bipartisan piece of legislation would prevent massive cuts to New York hospitals' Medicaid payments.

"I am grateful to Rep. LaLota for introducing this critical piece of legislation to protect our nation's safety-net hospitals providing quality care to the patients most in need," said Carol Gomes, Stony Brook University Hospital CEO and COO. "If Sec. 203 is not amended, Stony Brook University Hospital will incur a $53M reduction in revenue this fiscal year and that reduction will continue to grow into the future. I am urging Congress to support and pass this essential amendment now."

This no-cost legislation would mitigate the unintended impact of a provision included in section 203 of the 2021 Consolidated Appropriations Act, which altered the definition of Medicaid shortfall in calculating the limit on Medicaid disproportionate share hospital (DSH) payments. The new sec. 203 limit excludes costs and payments for Medicaid patients dually eligible for commercial or Medicare coverage, counting only the costs and payments for patients for whom Medicaid is the primary payer or who are uninsured. An unintended consequence of section 203 is that it cuts DSH payments for hospitals like Stony Brook that incur significant uncompensated costs for low-income dually eligible Medicare patients.

"New York's safety-net hospitals, like Stony Brook University Hospital, are the backbone of our healthcare system, providing essential care to our most vulnerable communities. The potential $53 million cut in Medicaid funding threatens the very foundation of these institutions," said LaLota. "My bipartisan Save Our Safety-Net Hospitals Act would prevent massive cuts to the nation's most vulnerable hospitals without any cost to the taxpayer and ensure they can continue to deliver critical services. This is a bipartisan and common-sense fix to an issue directly impacting hospitals on Long Island and safeguards healthcare access for those who need it most, ensuring that no one is left behind due to bureaucratic oversights."

The bill is supported by America's Essential Hospitals, the Healthcare Association of New York State (HANYS), the Suburban Hospital Alliance of NYS, the Alliance of Safety-Net Hospitals, Nassau-Suffolk Hospital Council, and the Greater New York Hospital Association (GNYHA).

SBU's Office for Federal Relations will continue to work with Rep. LaLota, SBU's healthcare association partners, and the other members of the New York congressional delegation to advocate for the swift passage of the Save Our Safety-Net Hospitals Act.

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