Virginia: Major budget cuts likely for nursing providers

Share this article:
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.
Share this article:

More in News

CMS updates coding instructions for hospice site of service, principal diagnosis

CMS updates coding instructions for hospice site of ...

A new Medicare hospice manual update includes instructions for which principal diagnosis codes are acceptable, and clarifies which codes should be used for services in a skilled versus non-skilled nursing ...

Vast majority of nursing home residents chronically constipated, and it's not well ...

Chronic constipation is highly prevalent in nursing homes and not well controlled, leading to a high likelihood that residents develop fecal impaction, according to findings from a first-of-its kind study.

Federal judge dismisses nursing home 'kickback' case; upholds large X-ray company's 'swapping' ...

The way mobile x-ray company Mobilex bills nursing homes is acceptable, a federal judge recently determined. Mobilex is the nation's largest provider of mobile diagnostic services. It had been facing whistleblower charges that it effectively paid kickbacks to nursing homes through an arrangement known as ...