New York is making a bold move to reshape its healthcare landscape — starting with the hospitals that serve the state’s most vulnerable residents.
Governor Kathy Hochul this week announced over $2.6 billion in funding for safety net hospitals across New York, aimed at improving patient care, stabilizing operations, and strengthening long-term access to essential health services.
“These investments will bring vital resources to underserved New Yorkers,” Hochul said. “Every person should have access to affordable, reliable health care, regardless of the ZIP code they live in.”
Supporting hospitals that serve the most in need
The new funding comes through the Health Care Safety Net Transformation Program, created in the FY25 budget to support struggling hospitals through partnerships, capital upgrades, and regulatory flexibility. The goal: to improve care while ensuring these institutions stay open and financially stable.
This round includes major upgrades at six regional health systems, such as:
- Arnot Ogden Medical Center and Cayuga Health, launching a unified system called Centralus Health, focused on primary care, behavioral health, and ambulatory services across the Southern Tier and Finger Lakes.
- Crouse Hospital and Northwell Health, which will expand ambulatory care, modernize its NICU, and build a cardiac catheterization lab in Syracuse.
- Erie County Medical Center and the University of Buffalo Physicians Group, which will create a Community Health Pavilion and Learning Center on Buffalo’s East Side, boost physician recruitment, and implement a new electronic records system.
- Maimonides Medical Center and NYC Health + Hospitals, joining forces to modernize operations and maintain critical services for Brooklyn communities.
- St. John’s Riverside and Montefiore Health System, combining efforts to expand cardiac and cancer services in Yonkers and surrounding towns.
- Westchester Medical Center, Bon Secours, and Health Alliance, fully integrating into WMC Health with system-wide upgrades in pediatrics, behavioral health, maternal care, and digital records.
Broader impacts across communities
State officials say the impact of these partnerships will be both immediate and long-lasting — improving access to care, reducing health disparities, and supporting rural and urban communities alike.
“These hospitals are the backbone of care for vulnerable and underserved communities,” said State Health Commissioner Dr. James V. McDonald. “We’re building a more resilient and sustainable healthcare system that works for all New Yorkers.”
Many projects will also help train the next generation of healthcare workers through expanded residency programs, clinical simulation centers, and partnerships with local colleges and universities.
A counter to federal cuts
The investments come at a critical time, with New York bracing for nearly $13 billion in federal healthcare cuts. State leaders say these safety net hospitals — already under pressure — could face devastating impacts without state support.
By targeting funding to high-need areas and pairing hospitals with larger partners, the program aims to keep care close to home while modernizing infrastructure and improving efficiency.
“We’re protecting the people and communities who rely on these hospitals most,” said State Senator Nathalia Fernandez. “This is how we build a stronger, more resilient New York.”
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