Suffolk Reporter

On February 12, William Wertheim, Executive Vice President of Stony Brook Medicine, and SUNY Chancellor John B. King, Jr. traveled to Washington D.C. to discuss federal priorities with members of the New York congressional delegation and their staff. A key issue addressed was the National Institutes of Health's (NIH) recent decision to cap indirect cost rates at 15% for new and existing grants. This change could have a significant impact on research funding.

Wertheim expressed concerns about the NIH's guidance, stating, "Implementing the NIH’s new 15% cap on Facilities and Administrative (F&A) costs would significantly undermine Stony Brook University’s research capabilities." He highlighted that crucial research areas such as cancer, Alzheimer's, Parkinson's, and dementia would be affected. The potential loss in reimbursement for actual research costs at Stony Brook could reach $17 million if the new guidance is enforced. Extending this approach to all federal agencies might result in an annual loss of approximately $27 million for Stony Brook.

Another pressing matter discussed was the need to protect safety-net hospitals from Medicaid Disproportionate Share Hospital (DSH) cuts during upcoming federal budget negotiations scheduled for March. Wertheim emphasized that bipartisan legislative language is needed to prevent significant reductions in New York hospitals' Medicaid DSH payments. These funds are essential for maintaining access to care at institutions like Stony Brook University Hospital that serve vulnerable populations.

The unintended consequence of Section 203 of the FY21 Consolidated Appropriations bill could lead to a $50 million loss this year for Stony Brook University Hospital due to reduced DSH payments for hospitals incurring high uncompensated costs for low-income dually eligible Medicare patients.

During his visit, Wertheim met with Representative Nick LaLota and senior staff from Senator Chuck Schumer's office, Congressman Tom Suozzi's office, and Congresswoman Laura Gillen's office. The meetings were organized by SBU’s Office of Federal Relations based in Washington D.C., which will continue collaborating with New York's congressional delegation, federal agencies, and the current administration to advocate for Stony Brook’s federal priorities.