Dear Ally,

Less than two weeks ago, we learned that the Pennsylvania Department of Health would cut the state-funded portion of their regional Ryan White Part B contracts by 25%. For Allies, this represents a cut of approximately $800,000 for the fiscal year that started July 1, 2025.

In addition, the state also reduced the income limits for the Special Pharmaceutical Benefits Program and Ryan White program eligibility from 500% of the federal poverty level to 350%. While government cuts can be common for safety-net providers, this is the largest single cut I can remember, and it came without warning!

In a memo, the state said, “a host of factors are impacting the program, including the current federal funding climate, the increasing costs of services, especially prescription drug costs, and rising enrollment in the Special Pharmaceutical Benefits Program (SPBP).”

Allies for Health + Wellbeing is financially strong and remains committed to our mission and our community, but we simply cannot make up this big of a revenue shortfall in just nine months. We have had to make difficult and swift decisions to protect the agency overall.

The PA Department of Health also stated that we should prioritize core medical and support services for people living with HIV, including case management, medical care, behavioral health, and food pantry among others. Because of this, Allies made the sad and difficult decision to discontinue our early intervention program, Project Silk and eliminate the three positions associated with the program. We greatly appreciate the commitment demonstrated by the Project Silk staff and truly valued their work. Allies will continue to provide testing and linkage to care for individuals at elevated risk for HIV, which are the priorities of early intervention services, though with less capacity.

To further account for the revenue shortfall, Allies will forego filling certain open positions and reduce other spending. Even with all these reductions, our savings total approximately $400,000 or about 50% of the deficit. We are working to increase revenue to make up the other 50% and avoid further cuts.

As we work toward a sustainable path forward, rest assured that we will continue to deliver high-quality, compassionate care and services to those who need us.

Thank you,

Mary Bockovich
CEO, Allies for Health + Wellbeing