State's budget deadlock leads to Medicaid shortfall

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Skilled nursing providers and other Medicaid providers in California are in the midst of a crisis as a result of a budget impasse.

The state has exhausted its contingency fund, which allows it to make payments in the case of a budget stalemate. SNFs missed a Medi-Cal payment last week as a result of the lack of funding. The next scheduled payment is today. Each SNF receives an average of $100,000 per week, or $400,000 per month, from Medi-Cal, according to Betsy Hite, director of public affairs for the California Association of Health Facilities. The state has been without a budget since July 1.

Nursing homes and other providers have had to extend lines of credit, take out second mortgages and suspend payments to vendors as a result of the Medicaid shortfall, Hite told McKnight's. Facilities' first priority is payroll, she said. The Legislature currently is on summer recess and will reconvene later this month.