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Financial woes for nursing homes predicted

Funding cuts could close Iowa facilities

By BILL SHEA, Messenger staff writer
POSTED: November 7, 2009

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Nursing homes across Iowa may close as the result of proposed cuts in government funding, according to a long-term care association leader.

''If these cuts go through, access to care is going to be severely limited,'' Steve Ackerson told a Fort Dodge audience Friday morning.

Ackerson is the executive director of both the Iowa Health Care Association and the Iowa Center for Assisted Living. Those groups, he said, represent 585 long-term care facilities that are home to about 40,000 people.

But those numbers could shrink, he told local legislators and nursing home administrators gathered at Careage of Fort Dodge, 728 14th Ave. N.

Ackerson said projected losses of Medicaid and Medicare money could lead to nursing homes shutting down, especially in rural areas. He added that the remaining nursing homes would probably be reluctant to admit anyone who is at high risk of falling or who suffers from any kind of dementia that makes them combative.

He identified a 5 percent across the board cut in Medicaid funding as one cause of the problem. He said that actually amounts to an average 6.1 percent cut for nursing homes.

''We are being penalized more than the average Medicaid provider,'' Ackerson said.

Medicaid is the federal and state health insurance program for the poor.

At the same time Medicaid funding is being cut, nursing home revenue from Medicare is also down, according to Ackerson. Medicare is the federal health insurance program for the elderly.

He added that the cost of living adjustments that the federal government has traditionally included in its Medicare payments to nursing homes have been stopped. That means the homes won't get any additional money, even though their costs to care for residents are all but certain to rise.

''It just seems like everything has hit in one year,'' Ackerson said.

Ackerson's audience of some 25 people included state Sen. Daryl Beall, D-Fort Dodge; and state Reps. Helen Miller, D-Fort Dodge; and David Tjepkes, R-Gowrie.

Ackerson made some specific requests to the lawmakers.

First, he asked them to restore the Medicaid funding for nursing homes. He said that would cost $13 million.

Second, he asked them to enact a more precise legal definition of abuse of a dependent adult. He said the state Department of Inspections and Appeals uses a vaguely worded definition that can result in serious penalties for minor mistakes by caregivers.

''It's going to be a very austere year,'' Beall said of the 2010 legislative session.

He added that he doesn't want to forget that the budget figures lawmakers will grapple with affect people.

''It's not about numbers,'' he said. ''It's about people.''

Tjepkes said legislators must not take the Medicaid money for nursing homes to plug other holes in the budget.

He added that state government must realize that nursing homes are small businesses that employ thousands of people.

Miller said she wants to introduce legislation to ensure that caregivers who make minor mistakes don't end up being banned from the profession.

Contact Bill Shea at (515) 573-2141 or bshea@messengernews.net

 
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View Comments: | 1-5 | Post a comment
Anderson
11-12-09 9:21 PM
Nursing homes are facing a real decline of 17% in the cohort born in the 30's compared to that of the 20's now fast disappearing from the scene. The homes face a tough seventeen years until the boomers face the need. So, investors - and buyers of the graduated care offerings - beware!

boatassembler
11-07-09 9:49 PM
If a patient is on title 19 the STATE decides what the nursing home gets for each patient and they cannot charge the resident anymore than what the state pays them.And believe me what the state pays usually doesn't get much more than what it costs to house them.

boatassembler
11-07-09 9:45 PM
besides administrators don't keep all the money they take in. The owners of the homes (usually NOT the administrator) gets the money and then pays the administators as it does the rest of the workers. As far as not paying the help worth crap again that isn't up to the administrator, but rather the owner of the home. Try getting your facts before blowing off on something you know little about.

boatassembler
11-07-09 9:41 PM
hybernation: You are wrong. Nursing homes do not get the residents social security check. My father was in one and still got his check til the day he died.

hybernation
11-07-09 6:27 PM
if the nursing home administrators budget their money right they should be okay they've got to make big bucks concidering they get each resident's social security check,& don't pay their employees worth a crap so that the head honcho makes the biggest profit!

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