$47 Million Cut in Year-Ahead Nursing Home Funding Harms Patients,
Threatens Key Nursing Staff Jobs



    AUSTIN, Texas, May 13 /PRNewswire-USNewswire/ -- Commenting on a
newly-released analysis of the Bush Administration's proposed regulatory
changes that will cut Medicare-financed nursing home care in Texas by $47
million in the year ahead -- the 4th highest level of cuts in the nation --
the Texas Health Care Association (THCA) today warned the Medicare funding
cuts would both harm patient care in Texas' nursing homes, and threaten the
key caregiver jobs that make a measurable difference in quality outcomes.



    "The Bush Administration's proposed regulatory-driven Medicare funding
cuts will severely jeopardize the growing complex care needs of Texas'
oldest, sickest seniors -- especially when combined with the existing
weakness of Texas' Medicaid program," warned Tim Graves, President of the
THCA. "The bottom line is that the federal policy being illogically pursued
in Washington will hurt seniors and place in jeopardy the jobs of our front
line caregivers in our city, suburban and rural facilities alike."



    Earlier today, Bruce Yarwood, President and CEO of the American Health
Care Association (AHCA), in Washington, D.C., released an analysis of the
cumulative $770 million national Medicare cuts -- proposed by the
Administration-directed Centers for Medicare and Medicaid Services (CMS) --
which finds the regulatory changes will incur an $11.12 per patient day
(PPD) cut in Medicare-financed nursing home care nationally, and will have
the most significant negative impact on seniors in California, Florida, New
York, Texas, Ohio, Illinois, Pennsylvania, New Jersey, Michigan and
Massachusetts. The analysis, computed by the AHCA Reimbursement and
Research Department using Office of Management and Budget (OMB) data from
the Bush Administration's FY 2009 Budget and the Centers for Medicare &
Medicaid Services (CMS), finds the following:



    Rank   State             Total Reduction     Per Patient Day
                            (Millions)

    #1    California         $64.9               $13.69
    #2    Florida            $62.3               $11.66
    #3    New York           $50.0               $11.12
    #4    Texas              $47.0               $10.34
    #5    Ohio               $44.8               $10.92
    #6    Illinois           $42.2               $11.09
    #7    Pennsylvania       $36.2               $10.66
    #8    New Jersey         $34.6               $13.09
    #9    Michigan           $28.7               $11.20
    #10   Massachusetts      $27.1               $12.01
          ---------------------------------------------
    U.S. Total         $770                $11.12
    Graves said the combination of Medicare cuts and an anemic Texas
Medicaid program is severely undercutting facility staffing efforts and
intra-facility quality improvement programs, many of which are being
conducted jointly with state and federal government. "The unfortunate irony
is that on one hand, we are working vigorously and successfully to improve
facility care, while, on the other hand, government payment policy at the
federal and state levels undermines our collective policy objective - which
is to improve quality standards in the face of a growing demographic tidal
wave of retirees with substantially more complex care issues."



    The THCA President said now is precisely the right time to energize a
discussion about how to strengthen long term care in Texas, where the
state's Medicaid reimbursement rate has spiraled to 49th in the entire
nation, according to the national accounting firm, BDO Seidman, and other
sources. Said Graves, "With Medicaid financing a joint state-federal
responsibility, the Texas long term care profession is today urging
incumbent state lawmakers as well as their challengers - through our new
Texas-specific effort, "Educate '08" -- to take a hard look at the fact
that while the average national daily Medicaid rate per patient is $153.83,
the Texas rate is just $106.59."



    Even on a regional basis, the THCA President said, Texas is falling
behind: New Mexico ranks 30th nationally, at $137.24; Oklahoma ranks 44th,
at $116.84; Arkansas ranks 47th, at $111.76; and Louisiana ranks 45th, at
$115.00. said Graves: "Ultimately, the long term care funding crisis is all
about maintaining care quality standards and dignity for many Texas seniors
in their late 70's, 80's and still older, and we intend to make the case
that their care needs must be elevated in terms of the public policy
dialogue and actual public funding outlays."



    Founded in 1950, the Texas Health Care Association (THCA) is the
largest long term care association in Texas. THCA represents a broad
spectrum of long term care providers and professionals offering long term,
rehabilitative and specialized health care services. Member facilities,
owned by both for-profit and non-profit entities, include nursing
facilities, specialized rehabilitation facilities, and assisted living
facilities.

Link to this page: