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

Nursing home antipsychotic use has dipped nearly 19% under national effort, latest figures show

Nursing home antipsychotic use has dipped nearly 19% ...

The percent of long-stay nursing home residents receiving antipsychotic medication has decreased 18.8% under a nationwide initiative that started in 2012.

Jimmo succeeds in getting Medicare coverage, two years after landmark case ended

Glenda Jimmo has reached a settlement with the federal government and will finally receive Medicare coverage for claims that were denied in 2007, which led her to file a class-action lawsuit over the so-called "improvement standard."

Breier named new CEO at Kindred

Breier named new CEO at Kindred

Kindred Healthcare announced Thursday that it has chosen a new top executive to lead its push toward creating a mammoth national brand. Benjamin A. Breier, the company's current president and ...