Ohio Gov. Proposes Reducing Growth of Medicaid Payments to Nursing Homes by $327M Over Two Years

Ohio Gov. Bob Taft's (R) budget proposal would slow the growth rate of Medicaid reimbursements to nursing homes by $327 million over two years, the Cleveland Plain Dealer reports. Under the proposal, nursing homes would receive about $2.36 billion next year, a 2.5% increase. In 2003, rates would increase 8% to $2.55 billion. The nursing home industry says the reduction in payment growth amounts to about a $220,000 annual cut for a facility with about 100 beds. Peter Van Runkle, executive director of the Ohio Health Care Association, said that the reductions "will have a negative impact on the quality of care and the ability of facilities to keep their doors open." He added, "To meet staffing requirements, to do all the things that the public expects nursing homes should be doing, this proposal absolutely goes in the opposite direction." Taft's proposal orginally reduced payments by $250 million over two years, but the reduction increased after recalculations by state analysts. Taft said, "Even with our revisions, it's important to underscore the fact that nursing homes will receive substantial increased dollars over the next two years." The Plain Dealer reports that state House lawmakers were unable to reach a "compromise" on the funding in their budget, and passed the issue to the state Senate (Welsh-Huggins, Cleveland Plain-Dealer, 5/8).