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Healthcare facilities will face major funding cut if state budget is adopted without adjustments

  • / Updated:
  • Staff Report 

New York State’s healthcare facilities face a significant funding cut due to the state budget’s proposed changes to the 340B program. Governor Kathy Hochul’s budget plan seeks to modify 340B, which enables safety net providers to buy prescription drugs at a discounted cost and redirect the savings towards services for low-income and underrepresented communities.

If the proposed changes to 340B go into effect, healthcare providers like Trillium Health in Rochester could face a loss of $5 million in funding. The potential funding cut could impact the many non-medical services offered by Trillium, including transportation to appointments, housing services, medication delivery, and food pantry services.


According to Mark Malahosky, Trillium’s Vice President of Pharmacy Services, the cuts would primarily affect services that help people with barriers to accessing healthcare. Malahosky expressed concern that the cuts would result in increased overdoses, HIV cases, Hepatitis C, and sexually transmitted infections.

Healthcare providers like Trillium Health, Anthony Jordan Health Center, the University of Rochester Medical Center, and Rochester Regional Health are rallying in support of 340B. Assemblyman Harry Bronson has been leading efforts to keep 340B and is working on a compromise to keep healthcare providers’ funding intact.

URMC and Rochester Regional Health could lose up to $65 million and $40 million, respectively, while Anthony Jordan Health Center could lose several million dollars. Two healthcare facilities have already filed lawsuits against the proposed changes. The changes would take effect on April 1 when the state budget is due.