The Western New York delegation of state legislators joined Kaleida Health, Catholic Health System, Erie County Medical Center, and Niagara Falls Memorial Medical Center today in unveiling legislation aimed at preventing additional nursing homes in the area from being shut down.

“Nursing homes are an endangered species in Western New York,” said Assemblyman Mark Schroeder, sponsor of Assembly Bill #A10138, “Unless we act now, many more will shut down in the near future, spurring massive layoffs.”

The announcement was made at Kaleida’s Waterfront Health Care Center in Buffalo, the latest nursing home slated to be shut down. Eight nursing homes have closed in Western New York in recent years, and three facilities have closed in Buffalo in the past two years, resulting in the loss of over 700 jobs. Several more nursing homes are on the brink of bankruptcy.

 “The high proportion of Medicaid patients living in the city, combined with the outdated Medicaid reimbursement rates for our region, have left Buffalo disproportionately affected by nursing home closures over the past several years,” said co-sponsor Assemblyman Sam Hoyt, whose district includes the Waterfront nursing home.  “This bill will help to balance those inequalities so that we can keep important neighborhood resources like the Waterfront Health Care Center open.”

“Western New York nursing homes are at a disadvantage because the rate at which Medicaid reimburses them is far lower than the rates for nursing homes in other parts of the state,” said Senator William T. Stachowski. “The Medicaid reimbursement rate for the region is significantly below the cost to provide care. In many cases, the reimbursement has been $35 to $50 below cost, per Medicaid patient, per day, resulting in losses that have exceeded $1 million a year for some nursing homes.”

Nursing homes, like Waterfront, that have a high percentage of patients on Medicaid are not economically viable under the current rate structure. The new legislation would increase the Medicaid reimbursement rates to a level where local nursing homes would be able to survive.

“We welcome and thank the state legislative delegation for their support,” said Michael Hughes, vice president of Kaleida Health. “This is not just a Kaleida Health and Waterfront nursing home issue; this is about nursing homes across upstate New York.  Together, with the Catholic Health System, ECMC, and Niagara Falls Memorial Medical Center, we are trying to salvage urban long term care in our community. Clearly it is a crisis.”

The legislation is supported by both sides of the aisle, including Democrat Assemblymembers Francine DelMonte, Dennis Gabryszak, Crystal Peoples-Stokes, Robin Schimminger, and Republican lawmakers Jim Hayes, Jack Quinn, Jane Corwin, and Dan Burling. State Senator William Stachowski has introduced the bill in the state Senate, where it is co-sponsored by Senator Antoine Thompson.

Kaleida Health, Catholic Health System, ECMC, and Niagara Falls Memorial Hospital were instrumental in drafting the language in the bill, and are in agreement that the legislation is the best way to address the crisis.

“The situation is critical and immediate action must be taken before it is too late,” said Christine Kluckhohn, CEO of Catholic Health System.  “This legislation is desperately needed to preserve the future of long term care in Western New York.  That is why health care providers, state legislators, patients, and employees are united in the plan to fix this problem, and prevent more nursing homes from shutting their doors.”

Without the speedy passage of this legislation, nursing homes like Waterfront, which lost $2 million in the past two years, would be forced shut their doors for good.

“The community is united behind this bill, because Waterfront is so crucial to the quality of life in this neighborhood,” said Casimiro Rodriguez, chairman of the Coalition to Save Waterfront Health Care Center, a group of community organizations, chuches, and health care workers focused on keeping the nursing home open. Rodriguez thanked legislators for answering the call of the community. 

“Nursing homes are so important to the fabric of a community,” he said. “We all need to work together to save them from extinction.”