Louisiana lawmakers are allowing a change to the payment formula for the state’s powerful nursing home industry that will boost its bottom line, despite objections from groups that advocate for more at-home services for the elderly.
The chairmen of the House and Senate health care committees don’t plan to hold hearings on the payment changes planned by the Louisiana Department of Health. Without legislative intervention, the new regulation goes into effect Dec. 20.
The rule adjusts the complex formula used to determine how much each of the approximately 260 nursing home operators receive through state and federal Medicaid financing to take care of their residents. The change will increase the square footage allowed for many nursing home rooms.
That will give nursing home owners about $6 million more each year. The facilities, which are large campaign contributors and carry considerable political sway in Louisiana, already receive about $1.2 billion annually in state and government funding.
The Louisiana Nursing Home Association requested the rule change, telling the state health department the new reimbursement rate will update a 19-year-old formula to encourage operators to renovate their facilities for more single occupancy rooms. However, opponents argue the money would be better spent providing seniors with services that allow them to stay at home, rather than leaving institutionalization as the primary choice for care. Read the full story. Â
