Rep. LaLota Leads Bipartisan Breakthrough for Safety-Net Hospitals, Stony Brook Medicine
In a major bipartisan victory for Stony Brook Medicine and public safety-net hospitals across the country, Congress has enacted legislation that protects critical Medicaid funding for hospitals that serve vulnerable populations.
This long-sought policy fix, championed by Rep. Nick LaLota, has now been signed into law by President Donald Trump.
The new legislative language, which was included in the Consolidated Appropriations Act, 2026 (H.R. 7148), amends an unintended consequence of a formula change made in a prior Congressional appropriations bill that altered how Medicaid Disproportionate Share Hospital (DSH) payments are calculated. Medicaid DSH payments are supplemental federal funds to support safety-net hospitals like Stony Brook, which serve a disproportionately high number of Medicaid, low-income and uninsured patients.
The formula change overlooked a critical patient population factor relied upon by state and federal authorities to determine Stony Brook’s DSH allocation. As a result, this change sharply reduced critical federal support for Stony Brook, jeopardizing the financial stability of an institution that provides essential care to Long Island’s most vulnerable patients.
“We are very grateful to Congressman LaLota for leading this transformational legislation for Stony Brook Medicine and the communities we serve,” said William Wertheim, MD, executive vice president of Stony Brook Medicine. “By restoring fairness to the Medicaid DSH formula, Congress has strengthened public safety-net hospitals like ours, enabling us to continue to serve patients of all incomes and advance our mission of delivering world-class care.”
This legislative victory marks the culmination of a concerted four-year effort to ensure that federal healthcare policy supports — rather than undermines — the mission of hospitals that serve those in greatest need.
“In addition to Congressman LaLota’s leadership, we are deeply grateful to Senators Chuck Schumer and Kirsten Gillibrand for their efforts in advancing this legislation for Stony Brook and for their unwavering commitment to safeguarding safety-net hospitals,” said Carol Gomes, CEO and COO of Stony Brook University Hospital. “Their support for this legislative solution and collaboration with congressional committees and leadership were critical in securing the passage of this essential policy fix.”
The passage of this legislation reflects the success of sustained advocacy by Stony Brook’s Office of Federal Relations in strong partnership with HANYS and a bipartisan coalition of stakeholders and lawmakers.