On February 12, William Wertheim, Executive Vice President of Stony Brook Medicine, traveled to Washington D.C. with SUNY Chancellor John B. King, Jr. to discuss pressing federal issues with New York's congressional representatives and staff. The discussions focused on the recent National Institutes of Health (NIH) guidance capping indirect cost rates at 15% for grants and protecting safety-net hospitals from Medicaid Disproportionate Share Hospital (DSH) cuts.
The meetings occurred as the higher education and research community opposed NIH’s new Facilities and Administrative (F&A) cost guidance through litigation and Congressional engagement. "Implementing the NIH’s new 15% cap on Facilities and Administrative (F&A) costs would significantly undermine Stony Brook University’s research capabilities," said Wertheim. He highlighted that vital research areas such as cancer, Alzheimer’s, Parkinson’s, and dementia would be affected. Additionally, he noted a potential loss of $17 million in research reimbursement at Stony Brook if the guidance is enforced, which could extend to $27 million annually if applied across all federal agencies.
Wertheim also emphasized the need for bipartisan legislative action during upcoming budget negotiations to prevent substantial cuts to New York hospitals' Medicaid DSH payments. This funding is crucial for hospitals like Stony Brook University Hospital that serve vulnerable populations. An unintended provision in Section 203 of the FY21 Consolidated Appropriations bill reduces DSH payments for hospitals handling significant uncompensated costs for low-income Medicare patients. Consequently, Stony Brook University Hospital faces a $50 million loss this year.
During his visit, Wertheim met with Rep. Nick LaLota and senior staff members from Senator Chuck Schumer's office, Congressman Tom Suozzi's office, and Congresswoman Laura Gillen's office. The Office of Federal Relations at Stony Brook will continue collaborating with New York's congressional delegation and federal agencies to advocate for these priorities.