SBU and its hospital still waiting for multimillion-dollar COVID-19 reimbursements

Daily Point

State’s role as middleman could be a factor in FEMA payment delay

In the wake of the COVID-19 pandemic, Stony Brook University Hospital, Stony Brook University and the Long Island State Veterans Home in Stony Brook submitted more than $195 million worth of claims for reimbursement from the Federal Emergency Management Agency.

Very little money has come their way.

Private hospitals that submitted directly to FEMA have gotten their claims reimbursed but Stony Brook is still waiting. According to Suffolk County Executive Ed Romaine, the difference is that Stony Brook had to apply through the state Division of the Budget.

"Since SBUH is not the applicant, they were unable to contact FEMA directly," Romaine wrote in a letter to Gov. Kathy Hochul in October. "Stony Brook University Hospital, et al, have been in communication with the DOB and have urged them to ask FEMA to expedite the process."

It’s unclear how much of the delay stems from the federal response itself versus the state’s role as a middleman. Romaine noted in the fall that it seemed FEMA was still overwhelmed by pandemic-related reimbursement needs, even years after most of the expenses had been incurred.

The flagship university and hospital are Suffolk County’s largest employer. In the fall, Stony Brook officials said that the lack of reimbursement was causing cash flow issues at the hospital, to a point where the hospital had to borrow money from the university.

More than three months since Romaine wrote that letter, little has changed.

"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," a Stony Brook spokeswoman told The Point.

The state is also working on trying to resolve the issue, a Hochul spokesman told The Point.

"Our Administration is working closely with our federal and local partners to expedite payment of all COVID-related claims across the State, and we are hopeful these reimbursements are released soon," Hochul spokesman Gordon Tepper said.

At least one such reimbursement — for $105,000 — has been released, the Point has learned. That’s .05% of the total owed to Stony Brook and its affiliates.

— Randi F. Marshall randi.marshall@newsday.com

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