Medicaid Shortfall Growing

According to a recent study by the con-sulting firm BDO Seidman, the Medicaid program underpaid nursing homes nation-wide by $3.3 billion in 1999.  That works out to about $3,300 per patient per year.  The study was funded by the American Health Care Association (AHCA), which lobbies on behalf of long-term care pro-viders. 

Thirty-six states were included in the study.  The states with the greatest dispar-ity between the cost of care and the rate of Medicaid reimbursement were Massachu-setts, New Jersey, and Vermont.  Only in Alabama did the rate of reimbursement exceed the cost of care.

Experts from BDO Seidman stated that the shortfall continues to increase.  The short-age of nurses and CNAs drives up the cost of care amidst pressure from Congress to increase staffing.  According to Charles Roadman II, M.D., president and CEO of AHCA, the government wants “Cadillac” care at “Volkswagon” payment rates.