Gov. Kathy Hochul says federal healthcare changes could put additional financial pressure on rural hospitals across New York even as new federal funding is directed toward rural health systems, according to Spectrum News 1.
Hochul made the case while highlighting $124 million in state funding for the planned Northern Chautauqua Hospital in Fredonia, which is expected to open in 2029.
She said rural hospitals are already dealing with low reimbursement rates, rising costs, staffing shortages and difficulties recruiting healthcare professionals.
Republicans point to the federal Rural Health Transformation Program, which provides $50 billion over five years and awarded New York more than $212 million in its first year.
The federal rural health funding is intended for modernization, workforce development and new models of care, rather than directly replacing Medicaid or other coverage losses state officials say could result from separate provisions of federal law.
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