(Erie County, N.Y.) – Congressman Chris Jacobs (NY-27) is joined by Congressman Tom Reed (NY-23) and Congressman Joe Morelle (NY-25) in calling on the Department of Health and Human Services (HHS) Secretary Azar to provide additional funds for hospitals from the Public Health Services and Support Emergency Fund (PHSSEF).
“Hospitals in our region, such as Thompson Health, have fully complied with all COVID-19 guidelines and served their communities effectively during the pandemic; however, following these guidelines has resulted in drops in inpatient volumes and increased costs for protective equipment and testing,” Congressman Jacobs said. “While they have faced the same challenges and financial struggles as other providers, our hospitals, many serving rural communities, have not received the same amount of federal aid.”
“We care about our communities’ access to medical care and the incredible hospitals in our region who provide quality services,” Congressman Reed said. “It is only fair that HHS work with us to ensure bureaucratic classifications don’t prevent medical providers from receiving the federal aid they deserve to continue serving people during this difficult period.”
Jacobs, Reed, and Morelle cited Thompson Health and Eastern Niagara Hospital, which have not received any relief funding since the initial round of federal funding distributed on April 10th. Thompson Health serves over 165,000 residents and has more than 1,700 workers. Before COVID-19, 80% of their revenue came from outpatient services – these were halted to focus on the COVID-19 response, and they are now facing $10 million in losses.
Thompson Health and other providers have been without critical funding for over seventeen weeks, despite their continued efforts to provide COVID-19 relief services to our area. Without additional support, they are facing severe financial cutbacks that could have devastating effects on the region.
The Representatives are asking for the consideration of a “plus-up” formula for future aid funding. Under this method, each hospital would receive, at minimum, the same percentage of the previous year’s revenue. This would make funding distribution more even, currently Thompson, for example, has received roughly 2% of FY19 revenue, while other hospitals have received up to 50% FY19 revenue.
“Healthcare providers have been on the front lines battling this unprecedented global health crisis, yet many smaller providers have failed to receive the support and assistance they deserve,” Congressman Morelle said. “Many are struggling under the weight of financial loss and need our help to continue the essential services they provide for our community. I’m proud to partner with Congressman Chris Jacobs to stand up for these small hospital providers and urge HHS to provide additional relief immediately.”
“Throughout the COVID-19 response, our dedicated staff has worked hard to care for our community and to minimize the impact of the significant financial losses suffered due to a drop in revenue and multiple unexpected expenses. As the largest employer in our county, we are cognizant of our role in the local economy. We are imploring our elected officials to assist our nonprofit community health system in moving forward, for the health and well-being of residents throughout our region, as well as for the benefit of our heroic essential workers and the families who depend on them. We are grateful to Congressman Jacobs, Congressman Morelle and Congressman Reed for their support and advocacy on our behalf. We remain hopeful that the federal government will view assisting our health system as essential for the community as a whole as we all continue to navigate this crisis together, positioning ourselves for whatever lies ahead,” Mike Stapleton, President and CEO, Thompson Health said.
“Hospitals serving rural communities are, for many, one the of the only sources of quality healthcare in their areas. Ensuring they can continue this vital work is essential to responding to the pandemic in New York State, and it is also essential to the delivery of timely and life-saving healthcare in the future,” Congressman Jacobs said. “I have been a staunch advocate for the needs of our communities here in Western New York, and I will continue to call attention to these needs and to fight for critical funding.”
