Medicaid expected to underpay nursing homes this year by $14.17 per patient day

Share this article:

Nursing homes will face Medicaid underfunding in 2009 by a projected $14.17 per Medicaid patient day. That totals $4.7 billion for the year, according to a new report from accounting firm Eljay LLC.

The Medicaid reimbursement outlook for 2010 and 2011 looks even more dismal, according to the annual report. It is expected to be worse than the last seven in which the report was compiled due to unprecedented state budget deficits and the expiration of federal stimulus funds at the end of 2010, the report said. The actual daily reimbursement shortfall for 2007 was estimated at $14 per Medicaid patient day. Medicaid pays for more than two-thirds of skilled nursing facility patient days annually. Medicare plays a role in cross-subsidizing Medicaid deficits, the report said.

States still rely heavily upon provider taxes to fund nursing home reimbursement, the report found. But most states with provider taxes chose not to increase nursing home reimbursement, nor lower the provider tax rates this year. Instead, they used money from the American Recovery and Reinvestment Act of 2009 (ARRA) to subsidize state budget deficits. States continue to redirect more of their long-term care budgets to non-institutional services, the report also said.


Share this article:

More in News

Skilled nursing facilities with poor quality ratings do not readmit more patients to hospitals, researchers find

Skilled nursing facilities with poor quality ratings do ...

Low-quality and high-quality skilled nursing facilities readmit about the same proportion of residents to hospitals, suggest research findings recently published in the American Journal of Medical Quality.

Cipro and related antibiotics increase MRSA risk in long-term care facilities, study ...

Long-term care residents on a fluoroquinolone antibiotic such as Cipro are at an increased risk for methicillin-resistant Staphylococcus aureus, researchers in France have found.

Jonathan Blum, who oversaw long-term care reforms, resigns as head of Medicare

The nation's top Medicare official, Jonathan Blum, is leaving his post next month, news outlets reported Tuesday. Blum became a familiar figure to long-term care providers through Open Door Forum calls and other outreach efforts during his five-year tenure, as he guided implementation of Medicare ...