Schumer advocates for Capital Region hospitals to receive full reimbursements – troyrecord

U.S. Senate Majority Leader Chuck Schumer advocated for Capital Region hospitals to receive full reimbursements. (PHOTOS PROVIDED)

ALBANY, N.Y. — U.S. Senate Majority Leader Chuck Schumer recently rallied with major healthcare and hospital leaders from across the Capital Region and revealed his new efforts to call on Centers for Medicare and Medicaid Services (CMS) Administrator Chiquita Brooks- LaSure to finalize the recent proposed rules change that would have a massive nearly $200 million yearly impact on hospitals across the Capital Region.

Schumer broke down how changing the Medicare Wage Index payments will be game-changing for hospitals in the Capital Region and across upstate which could see nearly $1 billion in additional payments every single year.

“86 cents on the dollar compared to the average hospital. For decades that has been the reality Capital Region hospitals have faced when trying to provide high-quality healthcare and hire doctors in the Greater Albany area, but now we finally have an opportunity to get our hospitals the full payments they rightly deserve,” Schumer said in a news release from his office. “These low reimbursements leave hospitals in the Capital Region struggling to compete to bring the best doctors and nurses to the region, but under this new CMS proposal our Capital Region hospitals would receive nearly $200 million in additional support every single year. All of upstate New York in total would benefit BIG with nearly $1 billion more every year for our hospitals in communities big and small to boost healthcare services.”

“That’s why I personally wrote to CMS Administrator Brooks-LaSure to show in no uncertain terms how strongly I support this long overdue change for the Capital Region. I will not stop fighting for CMS to finalize this change and get Capital Region hospitals the full reimbursements they have been denied for too long,” Schumer added.

“After more than a decade working to fix our broken Medicare Wage Index and right this wrong done to our region, I’m thrilled that CMS has heeded our call with a transformative proposal that does right by our local health care providers, hospitals, and patients,” Rep. Paul Tonko stated. “This proposed rule would bring more than $180 million dollars annually to Capital Region hospitals. While we are so close to the finish line, now is not the time to let up. I will continue to uplift the needs facing our region and do all in my power to ensure this proposed rule is finalized.”

“Our health care providers keep the heart of our region beating,” Dennis P. McKenna, MD, president and CEO of the Albany Med Health System remarked. “Despite challenges spurred by the skyrocketing cost of labor and supplies, we continue to make significant investments in our workforce. Only they can provide the critical services that our patients rely on. As non-profit hospitals, every dollar directly supports the health of our communities. Should this proposal pass, it would allow us to stabilize our finances and our long-term vision to sustain quality health care. We are grateful to Senators Schumer and Gillibrand, along with Congressman Tonko, for their continued advocacy.”

“We are exceptionally grateful to Senate Majority Leader Chuck Schumer for his years of support and for his commitment to ensuring that the Medicare Wage Index proposal is finalized in the weeks ahead. Both he and Congressman Paul Tonko have long been staunch advocates for healthcare in our region and their support of this proposal acknowledges the fact that Capital Region hospitals have been systematically underpaid by the federal government for decades. It is a sign of hope for the future of our healthcare systems, as the realization of this could go a long way to ensuring our region’s hospitals are paid fairly for the services we provide. Our top priority is to ensure we can continue to provide safe, compassionate care to the communities we serve, well into the future,” Dr. Steven Hanks, President and CEO, St. Peter’s Health Partners and St. Joseph’s Health stated.

Schumer was also joined by Jill VanKuren, President & CEO of Saratoga Hospital.

Schumer explained that CMS’s Proposed Rule would amend the Medicare formula to include $192+ million annually in increased federal funding for hospital systems across the Capital Region, which for years have received less than the national average in terms of Medicare reimbursement to cover wages. As proposed, the Capital Region stands to receive a 43 percent increase in the Medicare wage payments it receives The increase seen by the Capital Region represents the second largest increase of payments in the country under the proposed formula.

Schumer explained that the Medicare Wage Index rate is used to determine how much money the U.S. government pays hospitals for labor costs when they treat Medicare patients. Each metro area is assigned a rate that dictates whether they receive more or less than the national average for health care labor costs. Since the 1980s, hospitals in the Albany area have received only 86 percent of what the average hospital receives to account for wages, which not reflective of the true wages and labor market in Albany. The proposed rule would increase the Capital Region’s adjustment to 122 percent of what the average hospital receives in wage adjustments, finally acknowledging that the region needs much higher than averages wages to compete and bring in the best providers, thereby bringing hundreds of millions in federal funding to Capital Region hospitals each year.

Schumer has been advocating for this change for years, now doubling down to ensure that the proposal is finalized by CMS. In his personal letter to the CMS Administrator, Schumer outlined the transformation impact this would have for both the Capital Region and Upstate, and urged CMS “in the strongest possible way to finalize the proposed rule.”

The proposal is now under review and will go through periods of public input and final approval.