DAL - Dear Administrator Letter
- Letter is also available in Portable Document Format (PDF)
March 6, 2026
Dear Administrator:
This letter informs you of a one-time increase in Nursing Home funding. The SFY 2025-26 Enacted Budget included two appropriations totaling $460 million gross to Nursing Homes, Assisted Living Programs (ALPS), Adult Day Health Centers (ADHC), AIDS Adult Day Health Care Centers (AADHC), and Hospice programs.
This lump sum payment represents the State share. The Federal share will be distributed upon Federal approval of the methodology. Payments were determined by the sum of two calculations, as follows.
First, $60 million gross was allocated proportionally based on each nursing home’s Medicaid revenue:
- Each facility’s Medicaid revenue was calculated by multiplying the latest approved 1/1/24 rate by the total billed Medicaid days for Calendar Year (CY) 2024.
- The resulting individual facility revenue was divided by the total Medicaid revenues for all facilities to calculate a share of the total. The resulting percentage was then multiplied by the $60 million to determine each facility’s portion of the $60 million.
Then, the remaining one-time increase amount was allocated on a dollar per diem basis:
- The total available amount of the increase was divided by the total billed Medicaid days for Calendar Year (CY) 2024, which results in a $14.49 per diem.
- The lump sum was calculated using the $14.49 per diem multiplied by each provider’s CY 2024 billed Medicaid days.
If a provider has multiple service units operating under the same MMIS ID, the payment values were combined into a single payment for each MMIS ID. The processing of this payment will take effect in cycle 2533 with a check release date of March 25, 2026.
Should you have any questions regarding the one-time payment please email NFRates@health.ny.gov.
Sincerely,
Laura Rosenthal, Director
Bureau of Nursing Home and Long-Term Care Rate Setting
Division of Finance and Rate Setting
Office of Health Insurance Program
