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Nursing homes face financial crisis in New York amid Medicaid issues

Bob Hurlbut, owner of 11 nursing homes in New York, is raising concerns about the state’s Medicaid reimbursement rates for nursing home care. He argues that the rates, which have not seen a significant increase in 15 years, are inadequate to cover the costs of care. He recently spoke with News10NBC about the situation, which he says is worsening by the day.


This financial strain comes as New York faces a $4 billion deficit, making it challenging for operators like Hurlbut to maintain their facilities. Hurlbut counters criticism that for-profit nursing homes compromise care quality, emphasizing his commitment to high standards. Inspection records support his claim, showing his facilities performing above state averages in most categories. However, he noted that he hasn’t paid personal income taxes for three years due to business losses.

New York nursing homes collectively face a $1.6 billion deficit, with a reported shortfall of $98.73 per Medicaid resident in required funding. Governor Kathy Hochul’s recent budget address indicated plans to cut Medicaid spending further, despite a 40% increase in Medicaid expenses over three years.

Faced with these financial challenges, Hurlbut urges the governor to prioritize elderly care, highlighting the urgent need for a reassessment of Medicaid reimbursements to nursing homes in the state.