Long Term Care News >

Details

Carcieri Budget Disastrous for Nursing Home Residents

Posted: 5/1/2008

Warwick, RI, April 29, 2008 - Hundreds of nursing home residents and their families, along with long term care advocates and caregivers, crowded the State House today to spread the message that Governor Carcieri's proposed cuts to nursing home care would be catastrophic for nursing home residents. Two cuts in particular, a reduction in labor reimbursement and a delay in a reimbursement adjustment intended to combat inflationary increases, would take a serious toll on the quality of care provided in nursing homes. Thousand of signatures on petitions opposing the cuts were delivered to the House and Senate.

If passed, the cuts would total more than $9 million. They would follow $7 million in cuts resulting from a delay in the inflationary adjustment last year. However, due to the Medicaid matching formula, the cuts would only save the state about half that amount.

Nursing home care is predominantly funded by the Medicaid system which studies show has routinely under funded the actual cost of care by millions of dollars each year. Providers state that years of reimbursement that has fallen short of their costs has left them with no more room to cut. "We're hemorrhaging. We can't possibly continue to provide quality care and retain competent staff with fewer resources. We're barely getting by as it is," said Richard Gamache, Chair of the Rhode Island Health Care Association, (RIHCA) a member organization comprised of approximately two-thirds of Rhode Island's nursing homes. "Today's nursing home residents are far more acutely ill that they have ever been and they desperately need 24-hour medical care. What are we supposed to tell them when we don’t have the funds to provide it?"

Causing more concern for providers and families is the fact that these cuts come with only two months left until the July 1 deadline for enacting Governor Carcieri's proposed Medicaid Reform Act. The Medicaid Reform Act proposes another $45 million in savings by diverting nursing home residents to home and community-based care. RIHCA is cautioning legislators that the plan is not realistic and questions the feasibility and safety of implementing what is sure to be a complicated system change in an extremely short time frame.

"We admire the Governor's plan to provide more choice in long term care options for Rhode Islanders elders but we don't feel that enhancing community-based care options is going to have a major impact on the population of Rhode Islanders needing nursing home care," stated Virginia Burke, President and CEO of RIHCA. "More than ever before, nursing home patients rely on round-the-clock medical care. Unfortunately, they are not candidates for home care." She also explained that several states have seen health care costs increase in the process of enhancing home care options as citizens previously without state-funded care, access the new services.

"The cuts outlined in the Governor's proposal can't be enforced without seriously compromising quality of care. Piling one cut on top of another is going to be the breaking point for a lot of Rhode Island facilities," said Gamache.

back to top