Hospital funding has long been an issue around New York state. A lack of funds creates a domino effect, as it leads to lack of nurses, which leads to longer emergency room wait times, and so on.

But there is some light at the end of the tunnel for hospitals as a large chunk of federal funding is being added to the money upstate hospitals get on a yearly basis.

Nearly a billion dollars a year is on its way to hospitals across the state thanks to the federal government modifying the Medicare Wage Index. Some health care providers say it couldn't have come sooner.

“We’ve literally been operating with one arm tied behind our back,” said Dr. Steven Hanks, Trinity Health New York president and CEO.

St. Joseph’s Health in Syracuse is one of dozens of New York health care organizations standing to benefit from the new stream of federal dollars.

“For years, upstate New York struggled with unfair, low Medicare reimbursement,” U.S. Senate Majority Leader Chuck Schumer said.

The Medicare Wage Index determines what the federal government pays hospitals for treating Medicare patients.

“It means more jobs. Our hospitals will be able to hire more people. But it’s great for everyone, because it means better health care,” Schumer said.

The revision will direct more than $967 million to hospitals across the state. St. Joseph’s Health will receive nearly $38 million.

“This adjustment is going to really put us on a path to, we believe, some degree of financial stability,” Hanks said.

Breaking it down by region, hospitals in the Rochester region will tap into most of this new funding with access to almost $243 million. Nearly $193 million will trickle into hospitals around the Capital Region, and hospitals in Western New York will see more than $170 million.

Schumer said at the very least, it levels the playing field for hospitals, particularly in the Albany area, where people were generally paid 86 cents on the dollar.

“Other states were paid $1.20, $1.40. California had a huge advance while we were paid less,” Schumer said.

The funding will become available in October. Health care leaders expect the impact to be wide-ranging.

“We’re also the largest employers in our regions. So we have a real tight connection with our communities in very unique ways,” Hanks said.