New York nursing home leaders warn that Medicaid reimbursement rates have failed to keep pace with rising costs, straining long-term care facilities statewide. Despite increases in Medicaid funding, providers say the money isn’t reaching them, making it harder to cover staffing, maintenance, and patient care.
Industry leaders estimate a $125 million annual shortfall to bring all facilities to a sustainable funding level, with many currently operating below cost. Advocates are urging Gov. Kathy Hochul to include long-term care funding in the 2025-26 budget, arguing that underfunding threatens vulnerable facilities.
Hochul’s office points to $1.7 billion in reimbursement increases since she took office, but nursing home operators say more targeted funding is needed to keep essential services running.
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