Jewish Senior Living Newsletter APRIL 2015 - VOLUME 3, ISSUE 1 Keeping you connected to our communities.
The Underfunding of Nursing Facility Resident Care State-proposed budget continues trend in limiting funds to nursing facilities. Michael Sattell, President & CEO
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he underfunding of Nursing Facilities in Wisconsin is at a critical juncture. Though this underfunding is not new, 2015 Senate/Assembly Bill 21, the 2015-17 state budget bill, fails to provide nursing homes with either a Medicaid rate increase or an acuity adjustment. Nothing. Although recent public hearings may have had some influence on our legislative leaders, if the Bill is not amended, most Wisconsin nursing homes will actually receive a cut in their July 1, 2015-June 30, 2016 Medicaid rate due to re-apportioning the acuity adjustment formula. Similarly, our ability to use Medicare revenues to offset these Medicaid losses remains severely curtailed following the 13% Medicaid rate reduction in 2011 followed by the additional federal sequestration mandating a 2% reduction in 2013 and not scheduled to change until 2024. The last State biennial bill (2013-2015) at least recognized the need for, and included, an acuity adjustment in response to our elderly becoming more frail, and added a modest rate increase. The bill now under consideration denies reality and perpetuates a system of continued underfunded services. A January 2014 study, “Report on Shortfalls in Medicaid Funding for Nursing Center Care,” revealed that Medicaid deficits sustained by Wisconsin’s
In This Issue
nursing facilities are the third highest in the country. In fact over 40 Wisconsin nursing homes have closed in the past decade, primarily because of insufficient Medicaid reimbursement. Medicaid recipients, including Family Care enrollees, comprise approximately 65% of all residents served in Wisconsin nursing facilities. Private pay nursing home residents are subsidizing this Medicaid underfunding by paying rates that average nearly $100 per day higher than a facility’s Medicaid rate for virtually the same level of care. The Jewish Home and Care Center is no different. As LeadingAge Wisconsin surmises: “No one ever has accused a Wisconsin nursing home of being overstaffed or its caregivers overpaid. While WalMart just announced its full-time workers soon will make $13/hour, the average Wisconsin CNA earns $12.94/hour to care for some of the most vulnerable members of our society.” Labor costs represent approximately 70% of the total cost of providing care and treatment to nursing home residents. At the Jewish Home and Care Center, we’re proud of our five-star CMS rating for staffing and care. It recognizes our level of commitment to outstanding services for our community; our embrace of our mission and
The Underfunding of Nursing Facility Resident Care Know Your Rights as a Rehab Patient - Before You Need It!
see “Resident Care,” page 4
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Wellness Programs Strengthen Our Residents Upcoming Events
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