A new two-year budget proposed by Gov. Ted Strickland (D) has alarmed advocates for skilled nursing facilities.

The budget would cut $112 million for operators during fiscal years 2010 and 2011. His plan also would create a standardized market-rate reimbursement. Previously, facilities reported their costs and were reimbursed by the state.
As of press time, the House restored funding in the bill and the Senate was reviewing the budget. After the Legislature makes its changes, Strickland has the power to line-item veto.

Those in the long-term care community are perturbed by the governor's plan, particularly about the change in the way facilities would be reimbursed. Higher-cost providers would lose out as a result of fixed-rate reimbursements, they argue. The state expects to save $55.9 million in fiscal 2010 and $56.3 million in fiscal 2011 from the fixed-rate reimbursement.