Financial Pressures Continue to Put Downstate at Risk (This post has been updated)

By Mary Alice Miller
Almost a year ago, Gov. Hochul proposed closing SUNY Downstate Medical Center due to its crumbling infrastructure and an annual $100 million cash hemorrhage for its operating costs. The governor also proposed spending $300 million to build a new facility in a nearby vacant lot for outpatient and academic services while moving inpatient services across the street to the already over-utilized Kings County Hospital. It is not known what would happen to SUNY Downstate Health Sciences University College of Medicine.

The sustained public uproar prompted the governor and state legislators to provide Downstate with $100 million for operating expenses for the next year and $300 million in capital funding in the state’s 2024-25 budget while also establishing a community advisory board to provide recommendations for a sustainable Downstate up to $750 million.

To get the $100 million in operating funds, SUNY was required to submit a budget plan to the state Division of Budget for approval before the $100 million in operating funds could be released. That agreement was crafted six months ago. As of November, SUNY has not submitted a plan for the aid.

The budget agreement also required a community advisory board to develop recommendations for allocating the $750 million in capital funding. The advisory board will be tasked to hold public hearings with community members, hospital staff and health care experts to evaluate central Brooklyn health care infrastructure and determine what a future Downstate would look like.

Last week Governor Hochul announced eight appointees to sit on the community advisory board who will make recommendations “to develop a reasonable, scalable, and fiscally responsible plan for the financial health, viability, and sustainability of SUNY Downstate Hospital and SUNY Downstate Health Sciences University.

The advisory board may consider up to 250 percent of New York State’s Capital Commitment and secured federal dollars for investment,” according to a statement from the governor’s office.

Governor Hochul appointed Citizens Budget Commission President Andrew Rein, Pastor Louis Hilton Straker Jr., and Dr. Lesly Kernisant, Brooklyn Plaza Medical Center (retired), to the community advisory board.

Senate Majority Leader Andrea Stewart-Cousins appointed SUNY Downstate Chair of the Department of Family and Community Health Dr. Enitza George, M.D., MBA, MSAI. Assembly Speaker Carl Heastie appointed Dr. Donald Moore, a Former Attending Physician at New York Presbyterian Brooklyn Methodist Hospital.

United University of Professions President Fred Kowal will serve as a representative on behalf of organized labor.
New York State Health Commissioner James V. McDonald, MD, MPH, and State University of New York Chancellor John B. King Jr. will join the community advisory board.

“Our community expects and deserves a true engagement process on the future of SUNY Downstate and a real plan to improve access to high-quality healthcare, and I’m grateful the Governor is launching this advisory board,” said State Senator Zellnor Myrie. “I am especially pleased with the appointment of Dr. Enitza George, who is deeply familiar with our community’s healthcare needs and Downstate’s role in supporting them. We are eager for the board to begin its work and look forward to reviewing its recommendations.”

“I am thrilled to contribute to the financial security of Downstate Medical Center and to work alongside esteemed members of the commission to ensure the center’s future with the resources, staff, and technology needed to support our residents,” said Assemblymember Brian Cunningham. “The hospital serves hundreds of thousands of people each year, many of whom live in my district, including low-income families and those from historically marginalized communities. It is a lifeline for building healthier neighborhoods by expanding access to care that prioritizes and elevates prevention services.”

Assemblywoman Latrice Walker expressed concern “regarding what appears to be a delay” in securing the $100 million allocated for operations support included in the FY 2025 Budget in a letter to SUNY Chancellor John B. King, Jr.

“I am surprised to learn that SUNY Downstate has yet to submit a budget plan for the $100 million allocation,” said Walker. “Respectfully, I am requesting an explanation of the apparent delay. What steps are being taken to complete and submit the required budget plan? What is the substance of the plan, and when will it be submitted?”

Assemblywoman Latrice Walker represents the 55th Assembly District, one of the Brooklyn communities served by Suny Downstate Medical Center. “The ultimate success of the hospital means better health outcomes for the people served by SUNY Downstate,” she said.

In a response to the above article, Chancellor King the following:

December 4, 2024
The Honorable Latrice Walker, Esq.
Member, New York State Assembly
400 Rockaway Avenue, 2nd floor
Brooklyn, NY 11212
Dear Assemblymember Walker,
Thank you for your letter regarding operational support allocated to SUNY Downstate Medical
Center in the FY 2025 Budget.
First, I want to thank you for your strong support of SUNY Downstate. As you know, SUNY is
committed to working with the Community Advisory Board appointed by Governor Hochul to
develop a plan for a stronger, sustainable SUNY Downstate that will allow the medical school
and hospital to continue preparing extraordinary diverse health care professionals, addressing
health disparities, and delivering quality healthcare for Brooklyn residents.
As such, SUNY has been working closely with the New York State Division of Budget to ensure
the $100 million that was allocated in the FY 2025 state budget is made available for deficit
financing. SUNY submitted a plan that has been approved, and we are confident that the
necessary deficit funding will be made available soon. In the meantime, we have been able to
use cashflow management strategies to maintain operations in anticipation of receiving the
$100 million.
As you know, $100 million in deficit funding will again be needed in the coming budget year to
maintain SUNY Downstate’s current operations. In addition, the Community Advisory Board has
been authorized to plan for up to $750 million in capital investments, $300 million of which was
appropriated last year.
Thank you for your continued commitment to SUNY Downstate. I remain committed to
providing timely updates as they are made available.
Sincerely,
John B. King, Jr., J.D., Ed.D.
Chancellor
State University of New York