by mbpoweski
23. July 2009 00:06
OHCA members may receive inquiries from local media, consumers and others regarding the impact of the budget on the facility and its services. We recommend that providers base their comments to the media on the impact the budget will have on their own facility. Specifically, providers should be ready to discuss:
- Net cost of the franchise permit fee
- Impact of bundling on the cost of services vs. payment provided, and whether facility policies/services will change as a result
- If the facility will need to make additional staff layoffs, cancel raises, make pay cuts (it will also be useful to discuss whether such actions have previously been taken)
- Other policy changes, cost cutting or service reduction measures that may be considered
The following talking points can be used to address the issues broadly:
- Ohio’s skilled nursing facilities – which provide around-the-clock care to 80,000 frail elderly and disabled patients – are now confronted with the harsh reality of meeting increased demand for quality, around-the-clock care with $184 million less in available resources, even though costs continue to climb.
- Many skilled nursing facilities will have to reduce staffing levels even more than they already have. While skilled nursing facilities and their employees strive to provide good quality care at all times, this could result in longer wait times for treatments or some cutbacks in non-critical care.
- While the budget will increase the per diem payment for nursing facility care, additional costs will include a $5.70 increase in the franchise permit fee (per bed tax) to at least $11.95 (from the current $6.25), and will also now include costs for oxygen, transportation, over-the-counter drugs, therapy, and wheelchairs for Medicaid patients, which were previously billed directly from the service provider. The increase in the Medicaid rate does not cover the full cost of the bed tax or the additional services; as a result nearly 90% of Medicaid-participating facilities will be losing money compared to what they received last year.
- The statewide average Medicaid reimbursement rate is being held flat for the next two years while the costs of providing quality care continue to increase.
- For the last five years, the rate of inflation has been three times greater than the minimal rate increases (1.1% per year) skilled care facilities have received. Some facilities will not be able to absorb the additional reductions and may have to shut their doors.
- We will continue to serve our residents by providing the best health care and services we can, in a safe and clean environment.
Should you need additional information or have questions regarding taking to media representatives, please contact Steve Mould (smould@ohca.org), 614/540-1325. For more details regarding the budget and its impact, please contact Pete Van Runkle (pvanrunkle@ohca.org), 614/436-4154 or Mike Compton (mcompton@ohca.org), 614/540-1326.
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