Stony Brook University Hospital (SBUH) never received over $175 million in Federal Emergency Management Agency (FEMA) reimbursements for expenses related to the COVID-19 pandemic.

The missing funds have caused significant financial strain on the hospital and alarmed administrators and local politicians, who worry that both the hospital and the local economy could be negatively impacted by the missing resources.

In March 2020, the COVID-19 pandemic gripped the United States, causing widespread lockdowns and economic struggles. It also put a large burden on the country’s healthcare system which struggled with the influx of patients infected with the virus.

In response, President-elect Donald Trump declared a state of emergency, which authorized the usage of FEMA’s public assistance program and allowed healthcare providers to receive reimbursements from FEMA for costs spent on providing care for COVID-19 patients.

For SBUH and other hospitals all across the country, this was a significant moment. It allowed them to spend more of their resources than otherwise possible on care for many sick patients infected with a virus that had yet to be sufficiently researched.

SBUH has submitted thousands of reimbursement claims since 2022. However, the hospital has yet to receive the money it applied for.

Local politicians concerned about economic impacts

On Wednesday, Oct. 9, over two years after the first reimbursement claims were filed, Suffolk County Executive Edward Romaine wrote a letter to New York State Gov. Kathy Hochul, advocating for Stony Brook to receive the funds they applied for. He never received a response.

In the letter, Romaine expressed concern that SBUH wasn’t getting fair treatment compared to private hospitals, which were allowed to apply for reimbursement through FEMA directly. SUNY Hospitals, like SBUH, were required to submit reimbursements through the Division of Budget (DOB), an agency of the New York State government. The DOB then sends those reimbursements to FEMA.

“Stony Brook University Hospital, et al., have been in communication with the DOB and have urged them to ask FEMA to expedite the process,” Romaine wrote in the letter.

Neither Hochul’s press office nor the DOB responded to a request for comment.

In an interview, Romaine said that the hospital’s struggles had already caused a “dent” in Suffolk County’s economy and that there has been a lack of clear communication about why the funds have yet to be disbursed.

“The Division of Budget is saying that the reason the State University hasn’t been able to be reimbursed is because FEMA is overwhelmed,” he said. “Really? This is two, three years after the pandemic, and they can’t process this yet? Other hospitals have already been reimbursed, so I’m obviously skeptical about that.”

Kate Macdeo, a spokesperson for FEMA, did not specify why the funds had not yet been expended to SBUH.

Macdeo wrote in an email to The Statesman that “Hospitals, and other eligible applicants, seeking FEMA Public Assistance funds for COVID-19-related expenses must submit a Request for Public Assistance to FEMA through the State, documenting eligible costs like PPE, temporary facilities, and emergency medical care. FEMA reviews the application for compliance with federal policies, and approved costs are reimbursed at a federally determined share (often 100%).”

Romaine also said that he was frustrated about the lack of communication from Hochul on what he views as a significant threat to the economic health of Suffolk County, one of the most populous areas in New York State.

Stony Brook and SBUH are the largest employers in Suffolk County. According to a study published in early November by John Rizzo, a professor in the Department of Economics, Stony Brook contributes $8.93 billion to Long Island’s economy every year — 3% of the region’s annual gross domestic product.

“I try to show respect to the governor, I’ve written a legitimate letter about a legitimate government problem that I’m trying to resolve on behalf of a major economic engine in my county,” he said.

According to Romaine’s letter, his office and Stony Brook’s administration aren’t the only ones trying to resolve this issue.

Representatives from the central SUNY administration have also met with SBUH and the DOB in order to try and resolve the issue. At the time the letter was written, representatives from SUNY, the DOB and New York Sen. Charles Schumer’s office were trying to set up a meeting with FEMA in order to find out what is causing the delays and how to best move forward.

SUNY spokesperson Holly Liapis wrote in an email that the system’s administration was “hopeful” reimbursements would be made available in the near future.

“SUNY, Stony Brook, and our federal and state partners are working together to expedite payment of COVID-related claims to SUNY hospitals, and we are hopeful reimbursements for expenses related to the critical role SUNY hospitals played during the pandemic are released soon,” she wrote.

SBUH declined to make any of its executives available for an interview for this article. In a statement, a spokesperson for the hospital wrote that “Stony Brook University remains engaged with our federal and state partners, as well as SUNY, to expedite payments from FEMA and ensure the hospital has the resources needed to serve our communities.”

Financial Challenges for SBUH

While local politicians and University administrators push for the funds to be released, SBUH continues to struggle with the fiscal challenges posed by the missing funds.

Stony Brook Interim President Richard L. McCormick said that the lack of reimbursements was already causing significant issues.

“It’s a big, big problem,” McCormick said. “It’s huge. I mean the hospital literally has cash flow problems because we don’t have that money. The problem is very real.”

McCormick further explained that while the hospital’s budget was “not in the red,” it had been forced to borrow money from the University to continue functioning.

“Cash flow problems means that you don’t have enough right this minute, but you will by the end of the year,” he said. “So the University lends the hospital money, and they pay it back by the end of the year.”

According to McCormick, Stony Brook “can’t get a timeline” or any indication of when the funds from FEMA could be released.

As for the economic impacts on Suffolk County, McCormick said he “didn’t have anything profound” to say about that particular issue but indicated that if the reimbursement funds were released, SBUH could make investments that would benefit the local economy.

“Obviously, if we had those resources, they would be invested in things like more employment, more patient care, more purchase of facilities and equipment and those would promote economic growth … I can’t [say] specifically how the FEMA money would contribute to Suffolk County, but over $170 million is not a small amount,” he said.