Governor Hochul’s FY 2023-24 Executive Budget Proposal
On Wednesday, February 1st, Governor Hochul released her $227 billion FY 2023-24 Executive Budget proposal.
As presented, the FY 2023-24 Executive Budget increases “All Funds” State spending by an estimated 2.4% and continues the Medicaid Global Cap through 2025. The metric used to set the Medicaid Global Cap spending continues to be based on a 5-year rolling average of Medicaid spending projections. The Governor’s Executive Budget reflects $11 billion in additional Medicaid spending growth between FY 2023 and FY 2027.
In presenting the Executive Budget, Governor Hochul emphasized that last year’s Executive Budget included the largest investment in healthcare in the State’s history and that she is “doubling down” on that investment with her FY 2023-24 Executive Budget. Specifically, in FY 2024, the State funded portion of the Medicaid program will be the largest in State history at $34.7 billion with 7.9 million expected enrollees by June 2023.
The following is a brief summary of certain initiatives included within Governor Hochul’s FY 2023-24 Executive Budget:
- Medicaid Rate Increase: Provides a 5% increase ($157.5 M State Share) in the operating component of a nursing home’s Medicaid rate effective April 1, 2023. Provides a 5% increase in the Medicaid rate for assisted living providers as well;
- Capital Funding: Provides $1 billion in capital funding for the creation of a new Statewide Health Care Facility Transformation Program (“Statewide V”) for nursing homes, adult care facilities and hospitals, and other providers, for capital projects that, among other things, increase access to care, improve quality of care, ensure financial stability of health care providers; or invest in technological or telehealth projects;
- Nurse Staffing Agency Requirements: Requires health care staffing agencies to register with the DOH; establishes staffing agency standards; requires all staffing agency rates to be reported on a quarterly basis; prohibits the imposition of liquidated damages or employment fees if temporary worker is hired by provider; authorizes the DOH to revoke staffing agency licenses; authorizes the DOH to request the Attorney General to bring a cause of action against a staffing agency; requires a report to be drafted by the DOH and the DOL and delivered to the Governor and the Legislature by 3/31/24;
- Medication Aides: Allows for nursing homes to utilize medication aides;
- Out of State Nurses: Allows New York to join the Interstate Licensure Compact so nurses and physicians licensed in other states may practice, either physically or virtually, in New York;
- Assisted Living Survey Requirements: Requires assisted living facilities to report annually on quality measures; post monthly services rates, staffing, residency agreements and summaries of fees; authorizes DOH to post results of assisted living facility quality reporting; top rated facilities would be granted the classification of advanced standing on their annual surveillance schedules; advanced standing facilities would be surveyed every 12 to 18 months, while all other assisted living facilities would be surveyed on an unannounced basis annually; assisted living facilities that receive national accreditation may be exempted by the DOH from surveys during the duration of their accreditation;
- Minimum Wage: Indexes the minimum wage regionally for inflation and allocates funds for the cost for State service providers.
- Public Health & Health Planning Council (“PHHPC”): Reduces from 10 to 7 years the PHHPC character and competence look back review period for certain CON applications; eliminates PHHPC review for transfers of interest of less than 10%; raises the cost threshold for projects that need to file a CON with the DOH; and revises the definition of “public need;”
- Non-Medical Transportation: Establishes a working group to recommend ways to expand access to non-emergency medical transportation;
- Nurse Scholarships: Expands scholarship funding for the ”Nurses For Our Future” program;
- Healthcare IT: Supports the replacement of the State’s healthcare reporting infrastructure with a “nation leading” health monitoring and surveillance system; and
- Wadsworth Center: Provides $967 million for the reconstruction and consolidation of the Wadsworth Center.
NYSHFA|NYSCAL will continue to keep you updated as the FY 2023-24 Executive Budget progresses and negotiations with the Legislature begin.
NYSHFA/NYSCAL CONTACTS:
Stephen B. Hanse, Esq.
President & CEO
518-462-4800 x11
Tarrah Quinlan, RN, BSN
Director of Education Program Development and Member Operations
518-462-4800 x20
Carl J. Pucci
518-462-4800 x36
