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Study Finds Health Care Underfunded by Medicaid in Pennsylvania and Other States

As a Philadelphia medical malpractice lawyer, I was interested to see a recent report on the ongoing funding problems for nursing homes that accept Medicaid. The American Health Care Association, a nonprofit long-term care trade group, released a study last week showing that nationally, state Medicaid programs underpaid nursing homes by $5.6 billion. That works out to a national payment of $7.17 per hour per patient, which the AHCA points out is below the current minimum wage. The states with the seven biggest funding shortfalls included Pennsylvania, at number six, and neighbors New York, New Jersey and Ohio.

The study (PDF) was commissioned by AHCA and performed by private company Eljay LLC. It puts Pennsylvania’s projected funding deficit for 2010 at $15.13 per hour per patient. The deficits come from the difference between the “allowable costs” for Medicaid services and what Medicaid pays homes. The actual cost of providing nursing home services might exceed Medicaid allowable costs, the report said, which means the shortfall might be even bigger. This is a major issue for nursing homes because Medicaid makes up about 64 percent of their funding, along with Medicare, long-term care insurance and private payment. A separate study published in the Archives of Internal Medicine found that nursing homes eliminated about five percent of their beds between 1998 and 2008 because of budget cuts, with a disproportionately high number of those beds disappearing in communities with high percentages of minorities or poverty.

This issue is interesting to Pennsylvania nursing home lawyers like me because funding has a direct effect on the quality of care patients receive. If, for example, nursing homes choose to let go of staff members, those staff members have less time to spend with each individual patient, and may be tempted to leave more often for higher-paying jobs elsewhere. The results can be disastrous, including patients allowed to wander without supervision, staff members who don’t notice bedsores or other problems, distracted aides who mix up drugs and overworked staff members giving inappropriate dementia drugs just to keep patients cooperative. These and other cutbacks can expose patients to unacceptable Pennsylvania nursing home abuse, which means adequate funding for elder care must be a priority.

If your family has suffered nursing home negligence, abuse or neglect in Pennsylvania, you should call the Philadelphia injury lawyers at Rosenbaum & Associates right away. You can reach us anytime by sending us a message through our website, or call toll-free at 1-800-7-LEGAL-7.

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