caregiver pushing senior in wheelchair

New York — A ruling by the New York Supreme Court judge has  stopped the state from implementing a new methodology for calculating reimbursement rates that would have cost operators $246 million in Medicaid funding.

Acting Supreme Court Justice Kimberly O’Connor granted a preliminary injunction in November, temporarily halting the change from taking effect.

A coalition of more than 100 state and regional nursing homes filed a lawsuit against the New York Department of Health and officials in late October. The suit challenged the state’s proposal to change its methodology for calculating case-mix index adjustments, which sets Medicaid reimbursement rates for skilled nursing facilities.

They argued the change would effectively cut Medicaid by an average of $11.47 per resident per day, or $246 million per year statewide. The cuts had been scheduled to be implemented by Nov. 6 and be made retroactive to July 1, 2019.