A new "regional average reimbursement methodology" and a trend factor cut in NYS's proposed Executive Budget would cut payments to nursing homes statewide by $292 million, a 5% cut from baseline Medicaid revenue. Combined with a proposed "Medicaid-only case mix" cut, these cuts will reduce payments to nursing homes by almost $400 million. Both upstate and in NYC, the effects of the cuts are most pronounced in public facilities, and are disproportionately severe in NYC not-for-profit facilities.
| GNYHA Preliminary Analysis of the Impact of the Trend Factor and Group Average Cuts on Nursing Homes |
Annualized
2003 Fiscal
Impact |
Baseline
Medicaid Revenue
($ in millions) |
Loss
($ in millions) |
%
Loss |
| Total |
5,900 |
(292) |
-5% |
| New York City |
2,786 |
(133) |
-5% |
| |
Non-profit |
1,361 |
(82) |
-6% |
| Proprietary |
1,249 |
(34) |
-3% |
| Public/Gov't |
176 |
(18) |
-10% |
| Upstate |
1,880 |
(91) |
-5% |
| |
Non-profit |
1,190 |
(65) |
-5% |
| Proprietary |
1,350 |
(48) |
-4% |
| Public/Gov't |
574 |
(45) |
-8% |