Nursing Homes Face $4.7 Billion Medicaid Shortfall in 2009

A new report is estimating that Medicaid will underpay nursing homes by $14.17 per patient day in 2009, for a total of $4.7 billion in unpaid Medicaid allowable costs. Researchers predict that this will only get worse in 2010 and 2011 due to unprecedented state budget deficits and the expiration of federal stimulus funds at the end of 2010.

The report also notes that states are continuing to redirect more of their long-term care budgets to non-institutional services, and that many states that use provider taxes to fund nursing home reimbursement chose to neither increase nursing home reimbursement nor lower provider tax rates.

To view the report in its entirety, click here.