New Mexico nursing home industry pulls critical TV ads

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New Mexico's governor Bill Richardson and the state's nursing home industry have made up. The New Mexico Health Care Association replaced the nasty political ads it aired earlier this year criticizing the governor's plans to raise bed taxes with those thanking Richardson and state lawmaker for reaching a compromise.

The legislation, though it still taxes nursing home beds, provides a tax credit for patients whose stay is not covered by Medicaid.

Richardon, however, is still pursuing an audit of nursing home finances to ascertain whether Medicaid money was spent to run the ads. The ads cost $15,000 to $20,000, according to the nursing home association.