Governor Hochul Announces Historic $20 Billion Multi-Year Healthcare Investment in FY 2023 Budget

Governor Kathy Hochul today announced a historic $20 billion, multi-year healthcare investment in the FY 2023 State Budget. Creating better working conditions for healthcare workers will be a priority, with $1.2 billion dedicated to frontline healthcare worker bonuses, as well as a $4.5 billion multi-year investment in payment reform. Other landmark investments include $2.4 billion being directed to improving healthcare infrastructure and $3.9 billion in funding to provide aid to hospitals struggling financially from the COVID-19 pandemic. Another $7.7 billion will be spent over four years to increase the home care worker minimum wage by $3. These groundbreaking investments will work together to improve working conditions and grow the workforce by 20 percent over the next five years, and improve the healthcare industry for all New Yorkers. 

“New York depends on a strong, stable and equitable health care system and at the very foundation are the industry’s workers, who’ve been asked to do the impossible and are continuing to do so two years after the start of the pandemic,” Governor Hochul said. “This Budget includes historic investments that will rebuild the health care economy by raising health care worker’s pay, improving their workplace infrastructure and providing incentives that will attract more people to the workforce. I thank Majority Leader Stewart-Cousins and Speaker Heastie for their work to ensure we are building the health care economy of the future.” 

Over $5 billion dollars of this funding will be dedicated to pay reform and bonus wages for healthcare workers. This includes $1.2 billion going towards healthcare and mental hygiene worker retention bonuses, with up to $3,000 bonuses going to workers earning less than $125,000 who remain in their positions for one year, and pro-rated bonuses for those working fewer hours. $500 million will be dedicated to cost-of-living adjustments to raise wages for human services workers. The Budget also includes a 5.4 percent cost of living adjustment for human services workers. 

Healthcare infrastructure improvements are essential to not only improving the work environment for healthcare workers, but drastically improving patient care and wait times. The Budget establishes a new $2.4 billion investment for the purpose of financing infrastructure improvements for hospitals, nursing homes, ambulatory care centers, community-based centers and other eligible healthcare facilities and providers. In addition to this, $3.9 billion in funding over four years — an 88 percent increase over the prior four years – will be dedicated to providing aid to hospitals still struggling financially from the COVID-19 pandemic.  

To increase coverage and affordability for seniors, the Enacted Budget raises the income limit for New Yorkers 65 and up and for those with disabilities to 138% of the federal poverty level, raises the income limit for the Medicare Savings Program, and expands coverage for undocumented individuals 65 and up.    

New York State is committed to addressing structural and institutional inequalities in the healthcare to create a safer birth experience for all mothers and families across the state, including those who are undocumented. The Budget will include over $20 million in annual investments designed to expand access to holistic prenatal and postnatal care to reduce racial inequities and make quality care accessible for all mothers. The state will expand postpartum coverage for all individuals eligible for Medicaid while pregnant from 60 days to one year after they give birth, leading to more equitable health outcomes across the state.