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Auburn hospital among those in Upstate NY facing financial strain if $500M cut in state budget is approved

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  • Staff Report 

Auburn Community Hospital could face significant financial challenges if a proposed $500 million cut to the Vital Access Provider Assistance Program (VAPAP) is approved by the New York State Legislature as part of Governor Kathy Hochul’s budget. During a budget town hall meeting hosted by State Senator Rachel May, Matthew Chadderdon, a representative of the hospital, expressed concerns about the hospital’s future without the crucial funding designed to support financially distressed hospitals.


The cut would eliminate the VAPAP, which is currently a lifeline for hospitals facing serious financial instability, allowing them to continue essential operations while seeking sustainable healthcare solutions. The Greater New York Hospital Association criticized the proposed cut, suggesting that the replacement funding through a new 1115 Medicaid waiver might not adequately address the immediate needs of distressed hospitals like Auburn Community Hospital.

The potential removal of VAPAP funding raises alarms about the ability of nearly one-third of New York’s hospitals to serve their communities effectively, particularly in rural areas. With the state Legislature currently reviewing Governor Hochul’s budget proposal, there is hope among hospital officials and advocates that the funding might be reinstated to ensure the continued provision of vital healthcare services to New York residents.