Kaleida, Catholic Health getting nearly $140 million in Covid-19 relief from FEMA – Buffalo News

Kaleida Health and Catholic Health System are in line for nearly $140 million in federal funding, long-awaited money that could put Western New Yorks two largest health systems on an accelerated path to recovery from the lingering financial effects of the Covid-19 pandemic.

Kaleida will receive a total allocation of more than $65.4 million, while Catholic Health will get nearly $74.2 million from the U.S. Department of Homeland Securitys Federal Emergency Management Agency, U.S. Sens. Chuck Schumer and Kirsten Gillibrand announced Thursday.

The two senators have been making regular announcements this year of FEMA relief to Western New Yorks hospitals, but Thursdays eye-popping figure was by far the largest amount to date. The senators said that the federal relief, which comes from provisions in the American Rescue Plan, will help hospitals recover costs from the pandemic, which included staffing and overtime expenses, along with other emergency protective measures.

Today, with a whopping nearly $140 million starting to flow to Kaleida Health and Catholic Health System in Western New York, the federal government is keeping good on its promise to our hospitals and their workers, who heroically stepped up to protect public health, said Schumer, the Senate majority leader. This major federal boost to help reimburse costs associated with hiring more nurses, staff and purchasing personal protective equipment to provide around the clock care will ensure the hospitals have the funding they need, and deserve, to support their incredible medical staff, care for patients and continue to provide lifesaving care to Western NY communities.

Western New York hospitals, like many others across the state and country, were battered financially by a pandemic that upended the health care system. Operationally, hospitals fully pivoted to care for Covid-19 patients Catholic Health, for example, turned St. Joseph Campus in Cheektowaga into a Covid-19-only hospital for a time. In addition, occasional state moratoriums on elective surgeries delayed massive moneymaking operations for hospitals, which only deepened their financial hole.

As the pandemic dragged on and hospitals struggled with staffing, they poured tens of millions of dollars into high-priced staffing agencies to make up the difference and provide care. Many are now seeing improvements in recruitment and retention efforts.

The health systems are forever changed, but recovering now, seeing volume return and financial projections improve. But the FEMA money coming through will provide a big boost.

We are incredibly grateful that Sens. Schumer and Gillibrand have answered the call to help hospitals here in Western New York that were financially battered by the COVID-19 impact, Kaleida President and CEO Don Boyd said in a statement. Their relentless advocacy with FEMA will help us recapture precious resources and reinvest back into the health system, which ultimately will positively impact patient care.

Kaleida Health posted a $30 million operating loss on revenues of $2.3 billion in 2023. The operating loss was less than half of the $80.6 million operating loss Kaleida posted in 2022, while revenues were up 12% from $2.05 billion.

Kaleida Health has posted more than $250 million in losses since 2020, but its performance is improving.

The health system reported a $30 million operating loss on revenues of $2.3 billion in 2023. The operating loss was less than half of the $80.6 million operating loss Kaleida posted in 2022, while revenues were up 12% from $2.05 billion.

Kaleidas main competitor, Catholic Health, also has sustained huge losses in 2022 alone, Catholic Health recorded a $190 million loss.

Last year, Catholic Health recorded a better-than-expected operating loss of $42.5 million on revenues of $1.4 billion.

In an update to its bond investors earlier this year, Catholic Health said it had submitted $113 million in FEMA funding applications for potential reimbursement.

That money is now arriving. In addition to the $74.2 million for Catholic Health announced Thursday, Schumer and Gillibrand also announced more than $35 million in FEMA grants to Catholic Health nearly two months ago.

Catholic Health System is getting two grants one for $15.2 million and another for $20.2 million from the U.S. Department of Homeland Security's Federal Emergency Management Agency for the health system's response to the Covid-19 pandemic, U.S. Sens. Charles E. Schumer and Kirsten Gillibrand announced Thursday.

The personal and financial impact of COVID-19 on our community and health system will be felt for years to come, Catholic Health President and CEO Joyce Markiewicz said in a statement. Despite the monumental challenges and great cost to our system, associates in our hospitals and nursing homes delivered the highest quality care to our community throughout the pandemic. We work hard every day to rebuild financially, and American Rescue Plan funds received in the past have helped immensely. The ongoing support of Majority Leader Schumer, Senator Gillibrand, FEMA, and the New York State Division of Homeland Security and Emergency Services to ensure these COVID costs are reimbursed will go a long way in our post-pandemic recovery efforts.

Erie County Medical Center also has gotten FEMA funds. The areas primary trauma center logged an operating loss of more than $100 million last year before government grants significantly reduced the deficit.

In late February, Schumer announced Erie County Medical Center would receive $14.6 million from FEMA to reimburse the provider for Covid-19-related costs. A month later, ECMC got an additional $13.6 million in FEMA funding to upgrade its emergency infrastructure to help the Buffalo hospital maintain services during extreme weather events, like the blizzard that hit the area in December 2022.

Schumers office said Kaleidas funds announced Thursday include $37.1 million that will be awarded at a 90% federal cost share, while $28.3 million will be at a 100% cost share.

At Catholic Health, $6.5 million will be at a 90% federal cost share, while nearly $67.7 million is at a 100% federal cost share.

Throughout the Covid-19 pandemic, the staff at Kaleida Health and Catholic Health System stepped up to provide life-saving care for countless patients across Western New York, Gillibrand said in a statement. These federal dollars will reimburse Kaleida Health and Catholic Health System for costs associated with the emergency protective measures taken during the pandemic to protect the health and safety of Western New Yorkers.

Jon Harris can be reached at 716-849-3482 or jharris@buffnews.com. Follow him on Twitter at @ByJonHarris .

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Kaleida, Catholic Health getting nearly $140 million in Covid-19 relief from FEMA - Buffalo News