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Southern Tier Nursing Homes Face Funding Crisis
Advocates warn of facility closures and limited long-term care options for families
Published on Mar. 10, 2026
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Advocates are sounding the alarm on the funding challenges facing many Southern Tier nursing homes in New York. Many facilities are operating with negative margins due to Medicaid reimbursement rates that do not cover the cost of care. This is leading to facility closures and forcing families to send loved ones to care centers far from their communities.
Why it matters
The nursing home crisis in the Southern Tier is having a ripple effect across the entire healthcare system, from hospital emergency rooms to the families dealing with the stress of finding long-term care. Underfunded nursing homes are jeopardizing access to quality care for the region's most vulnerable residents.
The details
A LeadingAge New York analysis found that in several Southern Tier counties, 76-100% of nursing home beds were operated by facilities with negative margins. Nonprofit nursing homes have been under "unsustainable financial pressure" for years and need state funding support to keep their doors open. The cost of providing care has risen 51% from 2007 to 2024, while Medicaid reimbursement rates have only increased by 12.8%.
- Since 2014, eight nursing home facilities have closed across Central New York, with two closures in the Southern Tier in a two-year span.
- The NYS Senate and Assembly One-House Budget proposals are coming up in March 2026.
The players
Good Shepherd Communities
A nonprofit organization that operates nursing homes in Binghamton, Endwell, and New Berlin.
LeadingAge New York
An advocacy organization representing nonprofit and mission-driven senior care providers.
Jason Santiago
President and CEO of Good Shepherd Communities.
Lea Webb
New York State Senator and member of the NYS Health Committee.
Sebrina Barrett
President and CEO of LeadingAge New York.
What they’re saying
“This is 'no longer a looming crisis, it's a catastrophe,'”
— Jason Santiago, President and CEO of Good Shepherd Communities (ithacajournal.com)
“The reality is we don't have enough resources in our area for community members that have complex health issues, especially when it comes to diagnoses like Alzheimer's and dementia.”
— Lea Webb, New York State Senator (ithacajournal.com)
“Imagine trying to cover the cost of room, board and services for less than $50 a day.”
— Sebrina Barrett, President and CEO of LeadingAge New York (ithacajournal.com)
What’s next
The NYS Senate and Assembly One-House Budget proposals are coming up in March 2026, and advocates are calling for a minimum of $750 million in Medicaid funding to be prioritized for nursing homes.
The takeaway
The nursing home crisis in the Southern Tier highlights the need for increased state funding to support long-term care facilities and ensure vulnerable residents have access to quality care close to their communities. Underfunding has led to facility closures and limited options for families, underscoring the broader impact on the regional healthcare system.
