Senator Charles E. Schumer

FOR IMMEDIATE RELEASE: February 1, 2011

SCHUMER, GILLIBRAND, HIGGINS, KING: FOOT-DRAGGING BY FEDS PUTS BILLIONS OF DOLLARS FOR NY HOSPITALS AT RISK - SCHUMER URGES FEDS TO EXTEND DEADLINE SO HOSPITAL PROJECTS CAN MOVE FORWARD

350 Long-Overdue Projects to Modernize Hospitals Across New York At Risk Of Stopping Dead In Their Tracks - Without 'F-SHRP' Funding, NY Hospitals Can't Meet Construction Deadlines and Plan For The Future

'F-SHRP' Program Awards $2.5 Billion in Federal Funding to New York Hospitals; Saves Taxpayer Dollars and Reduces Excess Hospital Capacity

Hospitals Across the State Will Be Affected and Jobs Lost - A total list is below

Today, U.S Senators Charles E. Schumer and Kirsten Gillibrand and Representatives Brian Higgins (D-NY) and Peter King (R-NY) released a letter urging Department of Health and Human Services (HHS) Secretary Kathleen Sebelius and Office of Management and Budget (OMB) Director Jacob J. Lew to extend an important construction completion deadline for capital and other projects at New York State hospitals and other health facilities, paid for with federal dollars. The construction deadline is currently September 30^th of this year, meaning that under current regulations, the projects need to be completed by then, or funding will be cut off . The program through which these 350 projects in NY are being funded is called Federal-State Health Reform Program (F-SHRP). The program provides help to modernize hospitals and create jobs across the state by investing in infrastructure projects. The F-SHRP program’s goals are to promote the efficient operation of the State’s health care system; consolidate and right-size New York’s health care system by reducing excess capacity in the acute care system; shift emphasis in long-term care from institutional-based to community-based settings; expand the adoption of advanced health information technology and improve ambulatory and primary care provision.

In 2006 New York was awarded $2.5 billion for capital improvements at hospitals and health care facilities across New York State, with the stipulation that the projects needed to be completed by September 30^th, 2011. Unfortunately, due to bureaucratic red tape at the state and federal level, it took an unexpectedly long time to get the projects underway. Now many projects across the state are in danger of being stopped in their tracks, meaning major job losses, unless the deadline is extended. Projects at St. Francis Hospital in Poughkeepsie, NY; St. Joseph’s Hospital in Syracuse; Bassett Healthcare Network in Little Falls, NY; Oswego Health in Oswego, NY; will be particularly hard hit.

The state of New York has requested an extension, but the Feds have so far not responded.

“This program invests now in projects that create jobs in the short-term and maximizes taxpayer savings in the medium and long-term,” said Schumer. “This aims to give New York the most up to date and cost-effective hospitals so that patients can receive the highest level of care at the lowest possible cost. Putting a halt to these job-creating projects because of an arbitrary deadline, particularly when the hospitals themselves are not at fault, makes no sense.”

"This agreement has resulted in greater oversight and accountability,” said Senator Gillibrand. “It has saved taxpayer money and improved care for millions of New Yorkers. The waiver should absolutely be extended. These are exactly the kind of solutions we need right now. It is common sense."

“This is a fight to build on the progress underway that is creating quality jobs in the construction and health sectors and delivering enhanced treatment and care to patients across New York,” said Congressman Higgins. “Keeping these federal funds here is critical to the state’s economy and our position as a leader in health care delivery and breakthrough medicine.”

“It is imperative that New York be granted a waiver,” said Congressman King. “This program not only enhances patient care but reduces Medicaid waste, fraud and abuse. Additionally, the failure to secure an extension would shut down shovel-ready projects and cost New Yorkers good jobs.”

Through the F-SHRP program, New York State has been empowered to implement significant reform to the health care system including long-overdue and necessary modernization of the state’s health care infrastructure. Further, F-SHRP has increased access to patient care, while improving the quality of care through the establishment of medical homes. As a condition of the waiver, the state has consistently met annual goals to reduce Medicaid fraud and abuse.

Beginning in 2006 and continuing through 2010, New York State made grant awards of approximately $2.5 billion in state and federal funds to finance more than 470 projects. These awards are providing necessary financial support to help facilities undertake major projects, including developing supportive housing options as alternatives to nursing homes, revamping behavioral health services to better integrate medical and mental health care, and assisting facilities in developing health information technology interfaces to help coordinate care for patients with multiple chronic conditions. Many hospitals also are in the process of using these funds to help finance major projects to improve efficiency and expand access, including developing new primary care clinics and shifting inpatient beds to outpatient space.

While the funds have been committed to all of these worthy and complex projects, final completion of 350 of them may not occur before the September 30^th expiration of the F-SHRP program.

The extension would not require additional federal funds, but simply provide the state with authority to use the federal funds already committed under the waiver. In fact, it is expected that full implementation of all F-SHRP programs will result in Medicaid savings to both the state and federal government. An extension of F-SHRP would allow hundreds of reform and restructuring projects to be completed, including job-creating capital projects throughout the state

As the continuation of F-SHRP becomes increasingly uncertain, many facilities in early stages of their projects are reconsidering moving ahead, further endangering the job-creating capital projects and long-term reform that will help build a more efficient and cost-effective health care system.

Schumer, Gillibrand, King, and Higgins were joined on the letter by their colleagues in the New York congressional delegation.

New York ‘F-SHRP’ Program Hospitals

A.O. Fox Memorial Hospital Society, Oneonta	Montefiore Medical Center, Bronx
AHRC Health Care, Inc., New York	Morningside at Home, Inc., Bronx
Albert Lindley Lee Memorial Hospital c/o Bond, Schoeneck & King, PLLC , Syracuse	Morningside House Nursing Home Company, Inc., Bronx
Alice Hyde Medical Center, Malone	Morris Heights Health Center, Bronx
Allegany/Western Steuben Rural Health Network, Inc., Wellsville	Morrisania Diagnostic & Treatment Center, Bronx
Amber Court @ Suffolk County, LLC, Nesconset	Mount Sinai Hospital , New York
Amsterdam Nursing Home Corp., New York	Mount Sinai Hospital (Project #2 $13.5M), Long Island City
Anthony L. Jordan Health Center, Rochester	Mount Sinai Hospital of Queens, Long Island City
Arnot Ogden Medical Center, Elmira	Mount Vernon Neighborhood Health Center, Inc., Mount Vernon
Asian & Pacific Islander Coalition on HIV/AIDS, Inc., New York	Nassau Health Care Corp., East Meadow
Aspire of WNY D and T Center, Cheektowaga	Nassau Health Care Corporation d/b/a the NuHealth System, East Meadow
Association to Benefit Children, New York	New York City Department of Health and Mental Hygiene, New York
Auburn Memorial Hospital, Auburn	New York City Dept of Health and Mental Hygiene (NYCDOHMH), New York
Baptist Health Nursing and Rehabilitation Center, Inc., Scotia	New York City Health and Hospitals Corporation, New York
Bedford Stuyvesant Family Health Center, Brooklyn	New York Downtown Hospital, New York
Bellevue Hospital Center, New York	New York eHealth Collaborative, New York
Bertrand Chaffee Hospital, Springville	New York Ehealth Collaborative, New York
Betances Health Center, New York	New York Eye and Ear Infirmary, New York
Beth Israel Medical Center, New York	New York Hospital Medical Center of Queens, Flushing
Bethel Nursing Home, Inc., Ossining	New York Westchester Square Medical Center, Bronx
Bon Secours Charity Health System, Suffern	New York Westchester Square Medical Center c/o Garfunkel, Wild & Travis, P.C., Great Neck
Bronx Addiction Services Integrated Concept Systems, Inc. (BASICS, INC.), Bronx	Niagara Falls Memorial Medical Center, Niagara Falls
Bronx RHIO, Bronx	North Shore University Hospital, Lake Success
Bronx-Lebanon Hospital Center, Bronx	North Shore-LIJ Health System, Great Neck
Bronx-Lebanon Hospital Center, New York	North Shore-Long Island Jewish Health Care, Inc. , Great Neck
Brookdale Hospital Medical Center, Brooklyn	Northeast Health, Inc., Troy
Brookhaven Memorial Hospital, Patchogue	Northern Manor Geriatric Center, Inc., Nanuet
Brookhaven Memorial Hospital Medical Center, Patchogue	Nyack Hospital, Nyack
Brookhaven Memorial Hospital Medical Center, Inc., Patchogue	NYC Dept. of Health and Mental Hygiene (DOHMH), New York
Brooklyn Health Information Exchange (BHIX), Brooklyn	NYC Health and Hospitals Corporation - Lincoln Medical and Mental Health Center, Bronx
Brooklyn Hospital Center, Brooklyn	NYCHHC - East New York Diagnostic & Treatment Center, Brooklyn
Brownsville Community Development Corporation, Brooklyn	NYCHHC - Elmhurst Hospital Center, Elmhurst
Cabrini Medical Center, New York	NYCHHC - Queens Hospital Center, Jamaica
Cabrini Medical Center c/o Garfunkel, Wild & Travis, P.C., Great Neck	NYCHHC Coler-Goldwater, New York
Camphill Ghent, Inc., Copake	NYCHHC Kings County Hospital Center, Brooklyn
Carthage Area Hospital, Inc., Carthage	NYCHHC Lincoln Medical and Mental Health Center, New York
Catholic Health Care System, New York	NYCHHC-Lincoln, Bronx
Catholic Health System, Inc., Buffalo	Oak Orchard Community Health Center, Brockport
Catskill Hudson Area Health Education Center, Inc., Highland	ODA Primary Health Care Center, Inc., Brooklyn
Catskill Regional Medical Center, Harris	Open Door Family Medical Center, Inc., Ossining
Center for Disability Services, Albany	Orleans Community Health, Medina
Central Assisted Living, LLC, Far Rockaway	Oswego Hospital, Oswego
Central Nassau Guidance & Counseling Services, Inc, Hicksville	Oswego Hospital - Fulton Urgent Care, Oswego
Central Suffolk Hospital, Patchogue	Oswego Hospital - Primary Care Network, Oswego
Central Suffolk Hospital dba Peconic Bay Medical Center, Riverhead	Otsego County, Cooperstown
Champlain Valley Physicians Hospital Medical, Plattsburgh	Our Lady of Lourdes Memorial Hospital, Inc., Binghamton
Champlain Valley Physicians Hospital Medical Center, Plattsburgh	Our Lady of Lourdes Memorial Hospital, Inc. (Lourdes Hospital), Binghamton
Charles B. Wang Community Health Center, New York	P2 Collaborative of Western New York, Inc., Williamsville
Charles B. Wang Community Health Center, Inc., Flushing	Parker Jewish Institute of Health Care and Rehabilitation, New York
Chautauqua County Health Network, Jamestown	Perry Avenue Family Medical Center, Inc., Bronx
Chenango Health Network, Norwich	Pine Valley Center, LLC d/b/a Pine Valley Center for Rehabilitation & Nursing, Spring Valley
Claxton-Hepburn Medical Center, Ogdensburg	Planned Parenthood of Western New York (PPWNY), Buffalo
CNYHS, East Syracuse	Premier Health Care, New York
Cobble Hill Health Center, Brooklyn	Presbyterian Home for Central New York, Inc., New Hartford
Columbia County Community Healthcare Consortium, Inc., Hudson	Queens Hospital Center, Jamaica
Columbia Memorial Hospital, Hudson	Richmond Medical Center dba Richmond University Medical Center, Staten Island
Columbia University Health Care, Inc., New York	Richmond University Medical Center, Staten Island
Community General Hospital, Syracuse	Rivington House Health Care Facility and Mapplethorpe Residential Treatment Facility, New York
Community Health Care Association of New York State, New York	Rochester General Hospital, Rochester
Community Health Center of Buffalo, Inc. (CHCB), Buffalo	Rochester General Long Term Care, Inc. d/b/a Hill Haven Nursing Home, Webster
Community Health Center of Richmond, Inc., Staten Island	Rockland County Department of Health, Pomona
Community Health Project, Inc. d/b/a Callen-Lorde Community Health Center, New York