A draft report released from a House committee minority Wednesday finds that eight states likely are diverting Medicaid stimulus funding away from healthcare providers, such as nursing homes. Instead, they may be using it to fill budget holes.
According to the report from the House Oversight and Government Reform Committee minority: “By exploiting a loophole in the stimulus legislation, states are effectively able to use federal funds intended for healthcare spending for whatever projects they choose and without obligation to adhere to federal transparency and accountability rules attached to stimulus funds.”
Citing this report, the American Health Care Association said more stringent state spending safeguards are necessary. The organization commended Rep. Darrell Issa (R-CA), who spearheaded the report, for raising the issue.
