DeGraff Medical Park in North Tonawanda will stop offering therapy services next month.
Kaleida Health had confirmed that DeGraff, along with its Buffalo Therapy Services location on Maple Road in Amherst, would end therapy services in part due to federal Medicaid cuts in the “Big Beautiful Bill” and as part of its strategic plan. The facilities are scheduled to close Nov. 10, impacting around 30 employees who work at the sites.
DeGraff’s campus offers outpatient physical therapy, occupational therapy, speech therapy, oncology rehabilitation, lymphedema therapy, neurological rehabilitation, and vestibular therapy. Patients have been notified of the closures and of alternate providers they can shift their care to.
A statement sent to WKBW further stated that the decision was based on funding reductions and reimbursement, financial viability and sustainability of the locations, and access to these services in the community.
In a statement sent to the Gazette, Kaleida said the change is part of a $200 million strategic plan to strengthen the healthcare provider’s long-term sustainability. Hospital officials said they also anticipate an increase in uncompensated care costs due to the loss of Medicaid for many Western New Yorkers.
“This forward-looking plan will help us build a stronger, more resilient healthcare system — one that can serve our community today and well into the future,” said Kaleida President and CEO Don Boyd. “We want to ensure that individuals have the right level of care in the right setting. That requires us to look strategically at where and how we offer certain services with the goal of improving access, reducing duplicative services within the healthcare community, enhancing the patient experience, ensuring quality and creating a sustainable financial future for Kaleida Health.”
Their comprehensive plan aims to reduce costs while continuing to invest in services, programs and innovations to improve patient care and outcomes.
Members of the Communication Workers of America organized a rally in front of DeGraff last month, urging Kaleida to keep these services going at the two locations, with the union also asking the same for the Kaleida Family Planning Clinic in Buffalo.
A study published this summer from the Fiscal Policy Institute found that 94 of New York State’s 156 hospitals would see their profits completely gone with just a 10% cut to Medicaid revenue, forcing them to adjust services to remain in business.
Of the local congressional districts, Nick Langworthy’s 23rd District had eight out of 12 hospitals that rely on Medicaid funding and are at risk of closure because of the cuts. Claudia Tenney’s 24th District had five of its 13 hospitals’ profits impacted by just a 10% Medicaid cut. Tim Kennedy’s 26th District would have six of its seven hospitals impacted the same way.