US Senator Chuck Schumer has announced that he has secured nearly a billion dollar increase in payments from the federal government to Upstate area hospitals.
The payments, which will begin in 2024, and take place each year come from a new finalized rule to Medicare wage payments.
“This is one of the biggest shots in the arm for federal funding Upstate NY hospitals have seen in decades. This will be a monumental boost to healthcare for our families and to help our healthcare providers fix budget shortfalls, address doctor and nurse shortages and so much more. For years, our hardworking healthcare providers have faced unfairly low Medicare payments, receiving cents on the dollar for the care they provide, but now after over a decade of fighting I am proud to announce I have secured the rules change which will bring nearly $1 billion every single year to hospitals across Upstate NY,” said Senator Schumer.
Senator Schumer explained the Medicare Wage Index rate that is used to determine how much money from the government pays hospitals for labor costs when they treat Medicare patients has each metro area assigned a rate which dictates if they receive more or less than the national average for health care labor costs.
However, it was noted Upstate hospitals have received less than their true cost of providing healthcare for the areas they serve. New adjustments made will now ensure Upstate hospitals will be reimbursed at a higher rate. Guthrie Cortland Medical Center will now receive $4.9 million dollars a year in reimbursements from the federal government with the new adjustment.
“Reimbursement from Medicare has failed to keep up with inflation, particularly in recent years, making it increasingly challenging to meet the necessary level of care our communities require. This ruling is a welcome relief as it provides much-needed assistance, especially to rural health care systems across the country. It serves as recognition of a flawed methodology that has resulted in inadequate reimbursement for our efforts. Moving forward, we can anticipate fairer and more appropriate reimbursements, allowing us to better serve those in need.” Matt Huff, EVP, Chief Financial Officer for The Guthrie Clinic said in a statement to X101 News.
