Virginia: Major budget cuts likely for nursing providers

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Gov. Robert McDonnell
Gov. Robert McDonnell

The governor was expected to sign a budget bill that would slash nearly $124 million in Medicaid payments from nursing homes in fiscal years 2011 and 2012.

The reductions would total $54.5 million in FY 2011, which begins in July, and $69.4 million in FY 2012. Nursing homes were hoping that the cuts would be half that, according to Hobart Harvey, vice president of financial services for the Virginia Health Care Association. The General Assembly introduced a budget proposal that more than doubled the governor's proposed cuts.

“Belt tightening is the order of the day,” Harvey said.

One factor that would lower the cuts is Congress's decision to extend the federal medical assistance percentage (FMAP) increase. As of press time, the U.S. House of Representatives had not yet approved it.
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