Suffolk County’s Nursing Home Crisis: How Medicaid Cuts Are Threatening Healthcare Facilities and What Families Need to Know

Suffolk County families are facing an unprecedented healthcare emergency as nursing homes across the region face elevated risk of closure due to proposed cuts to Medicaid funding. With nursing homes in Suffolk County charging $12,395 per month for semiprivate rooms and $13,357 per month for private rooms, significantly higher than the national average, many facilities are already operating on razor-thin margins. The 2025 Medicaid changes are pushing these essential healthcare providers to the breaking point.

The Scale of the Crisis

The numbers paint a stark picture of the challenges ahead. Medicaid funds care for about 62% of nursing home residents nationwide and accounts for approximately 59% of all nursing home revenue, making it the largest single source of income for these facilities. In Suffolk County, where 39 local nursing homes provide skilled nursing and retirement services that accept Medicaid and Medicare, this dependency on government funding makes facilities particularly vulnerable to policy changes.

Recent federal legislation has introduced sweeping changes including a reduction in retroactive eligibility coverage from 90 days to just 30 days, a nationwide cap on provider tax rates dropping from 6% to 3.5%, and a moratorium on new provider taxes that states use to fund Medicaid programs. These changes could slash federal Medicaid funding by as much as $1 trillion over the next decade.

Impact on Suffolk County Facilities

The crisis is already manifesting in multiple ways across Long Island’s healthcare landscape. According to a June 2025 survey of 363 nursing home providers, 27% indicated they would “close facility(ies)” if the federal government reduced Medicaid funding. Beyond potential closures, 55% of facilities said they would reduce their Medicaid census, 58% would reduce current staff, and 77% would defer modernization efforts.

The staffing crisis is particularly concerning given that statistics show almost half of all seniors at some point during their life require nursing home care, with nursing homes in the metropolitan New York area costing approximately between $10,000 and $15,000 per month. This represents a huge expense for most families, making quality care accessibility even more critical.

What This Means for Families

For Suffolk County residents, these changes create a perfect storm of challenges. States cannot eliminate nursing home benefits as they’re a required part of Medicaid, but they could reduce the number of people allowed to enroll in home- and community-based services, cut the generosity of covered services, and reduce payment rates. This could result in more people going into nursing homes against their preferences, or people staying at home having to rely on unpaid family members for care.

The situation is particularly dire for facilities with high Medicaid populations. Dozens of nursing homes are at elevated risk because more than 85% of their residents are covered by Medicaid, their occupancy rates are below 80%, and they only have 1- or 2-star ratings on the CMS Five-Star Quality Rating System.

Legal Implications and Bankruptcy Concerns

As these financial pressures mount, many healthcare facilities may face difficult decisions about their future operations. The nursing home industry has already seen examples of how financial distress can lead to complex legal situations. Private equity firms have participated in nursing home bankruptcies, often borrowing against facilities and burdening them with debt, making it difficult to remain solvent when Medicare or Medicaid payments aren’t sufficient.

When healthcare facilities face financial difficulties or potential closure, families and residents may need specialized legal guidance to understand their rights and options. This is where experienced legal counsel becomes essential. For Suffolk County residents dealing with healthcare facility bankruptcies or closures, consulting with a knowledgeable Bankruptcy Attorney Suffolk County can provide crucial guidance during these challenging transitions.

Finding Legal Support During Healthcare Transitions

The Frank Law Firm, located in Old Brookville, New York, brings extensive experience to complex legal matters affecting Long Island residents. As a full-service professional law firm providing legal services in bankruptcy, foreclosure prosecution, financial services litigation, and business litigation, they represent individuals, companies, and financial services clients throughout Long Island, New York City, and surrounding areas. Their team is knowledgeable in all aspects of bankruptcy and reorganization, handling both debtor’s petitions and creditor’s rights matters, whether clients are filing for bankruptcy, trying to avoid bankruptcy, or dealing with entities on the brink of bankruptcy.

Preparing for an Uncertain Future

As Suffolk County faces this healthcare crisis, families should take proactive steps to protect their interests. The key to maintaining assets when facing nursing home expenses is consulting an experienced elder law attorney, as careful planning can preserve a family’s assets, and families should never undertake to submit a Medicaid application without obtaining legal advice from a qualified elder care attorney.

The current situation requires families to stay informed about changes in Medicaid eligibility, understand their legal rights if facilities close or reduce services, and seek professional guidance when navigating complex healthcare transitions. At firms like Frank Law Firm, attorneys ensure all client needs are accommodated while offering personalized attention throughout each step of the legal process, valuing the attorney-client relationship and going above and beyond for each client.

Looking Ahead

The nursing home crisis in Suffolk County represents more than just a healthcare challenge—it’s a community crisis that will affect thousands of families in the coming months and years. Residents and their families are already expressing concerns about having no place to go and potentially ending up homeless, creating very sobering situations for vulnerable populations.

As this situation continues to evolve, Suffolk County families must remain vigilant about protecting their rights and securing appropriate legal counsel when needed. The intersection of healthcare, financial planning, and legal protection has never been more critical for Long Island residents navigating these unprecedented challenges.