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Nursing homes: Medicaid funding bleak outlook in 2012

The recession’s impact on Medicaid patients in nursing homes has been cushioned by funds made available by the American Recovery & Reinvestment Act of 2009.  However, this funding source will no longer be available in 2012 to bolster Medicaid payments to nursing homes.  In this study prepared for the American Health Care Association, which is the association for long term care facilities, the analysts conclude that the “outlook for 2012 is extremely bleak.”  They studied the shortfall between what Medicaid pays a nursing home and the allowable costs of nursing home care — projecting that the average shortfall was $19.55 per Medicaid patient day in 2011.  The states with the highest projected shortfall per Medicaid patient day in 2011 are:

  • New York ($42.48)
  • Wisconsin ($41.13)
  • New Jersey ($34.04)
  • Massachusetts ($31.79)
  • Wyoming ($30.31)

Source: Eljay, LLC.  A Report on Shortfalls in Medicaid Funding for Nursing Home Care.  American Health Care Association, Dec. 2011.  Click here for full text: http://www.ahcancal.org/research_data/funding/Pages/2012-Medicaid-Shortfall-Report.aspx  Posted by AHA Resource Center, (312) 422-2050, rc@aha.org

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