Nursing homes in the state are bracing for tough times as a budget crisis worsens.

New York State could severely slash nursing-home funding under Gov. David Paterson's (D) budget proposal. Other states could follow suit as they struggle with budget deficits.

States are not reporting those Medicaid providers that have been suspended or excluded from their state programs, according to a new report from the Department of Health and Human Services Office of Inspector General.

A leading nursing-home association is calling for an independent panel to come up with new methods for overseeing nursing facilities. The association's task force issued 31 recommendations Tuesday, highlighting steps that can be taken until such a panel can be convened.

The Centers for Medicare & Medicaid Services is asking states to coordinate their Medicaid policies with Medicare's hospital-acquired condition payment policy so states do not bear the burden of paying for adverse events.

Next year could bring the most significant changes to the U.S. Food and Drug Administration in recent memory if Sen. Charles Grassley (R-IA) and Rep. John Dingell's (D-MI) plans come to pass, according to a news analysis.

Last week's decision by the Centers for Medicare & Medicaid Services to halt its planned $770 million cuts in Medicare Part A payments to nursing homes for fiscal year 2009 drew loud praise from the long-term care sector.

Reversing earlier plans, the Centers for Medicare & Medicaid Services will not trim $770 million in Medicare Part A payments to nursing homes in the next fiscal year. This development comes as welcome news to long-term care providers, who had rallied against the planned cuts.

Nearly half of the nation's senators have voiced objections to proposed Medicare cuts of $770 million in fiscal year 2009, according to the American Health Care Association and the Alliance for Quality Nursing Home Care.

Medicare providers will not face penalties if they do not collect retroactive fee increases from beneficiaries as a result of changes to Medicare payment rates, according to the Health and Human Services Office of Inspector General.