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The State FY2010 shortfalls will hit Long Term Care facilities Medicaid Reimbursement.
Here is a letter that was received regarding the State's budget issues and how they will be affecting those of us that receive Medicaid reimbursement,
Unfortunately, the recession continues to strike those that are the most in need.
"Dear Nursing Home Members:
As you know, the State is running a $700 million deficit for FY2010, which began July 1, 2009. Tomorrow, at the Board of Public Works, the Governor will request reductions of $300 million to the State operating budget. As a result, the nursing home reimbursement system will receive a two percent reduction, which equates to $23 million total funds ($8.8 million general funds and $14.2 million federal funds). This reduction will go into effect August 1, 2009. In general, $23 million equates to an average reduction of $3.90 per Medicaid day. At this time, ... is analyzing the affect this cut will have on the industry and will provide more detail after the Board of Public Works meeting tomorrow and over the next few days.
In addition, the State will need to take an additional $400 million in August to satisfy the $700 million shortfall. While the projected deficit is now at $700 million, State revenues continue to fall. Therefore, this projected deficit may increase. Providers should be cautious that additional cuts could be likely."