Compromise made on group-home fees

By Timothy Pratt (contact)

Monday, Sept. 9, 2002 | 9:07 a.m.

After nearly five hours of debate and heated input from a packed room of more than 50 residents, the state Board of Health voted Friday not to raise fees for low-income residents at group homes across the state.

In a compromise meant to juggle a tight state budget with the fixed incomes of some of the state's senior residents, the board voted to keep annual licensing for group homes and per-bed fees for low-income residents at current rates, while raising per-bed fees for other residents.

Annual license renewals, due by Nov. 15, will stay at $300, and facilities will pay $35 per bed for residents on Medicaid and Medicare, while paying $92 per bed for private-paying residents. The new fees will be in effect for one year only.

The issue had group-home owners and administrators concerned they would have to shut down if overall rates were raised.

"I see the fear in my residents' eyes if we should have to close our doors," said Cathy Richardson, co-owner of Dayton Parkview, an assisted living facility outside Carson City.

"All I have to say is, there but for the grace of God go I."

Currently the state's 350 group homes pay $300 annually to renew their licenses with the state Bureau of Licensure and Certification and $35 per bed.

Fees from the homes and other health-care facilities are the sole source of revenue for the state agency, and most facilities haven't undergone a raise in prices since 1997. This was beginning to pinch the budget of the agency, which is responsible for overseeing the quality of the homes' care.

"Operators of residential facilities know they've benefited from the last five years of no increase in fees," said Joey Villaflor, chairman of the state Board of Health, during the meeting.

"So now I'm looking for a win-win situation, where the bureau can be funded to protect the population while the facilities can continue to operate."

The win-win came hours later, after a motion to raise annual licensure fees to $400 and per-bed fees to $95 was roundly defeated, 5-2.

The second proposal drew unanimous approval from the board.

"I'm pleased that low-income seniors aren't bearing the brunt of the increase," said Mark McConnell, executive director for the Charleston, a Las Vegas assisted-living facility.

McConnell, whose home has three-quarters of 125 beds going to low-income seniors, said he would have to pass along the higher fees for private patients.

Other owners said they might assume the cost increase for their private patients and lower the number of beds they offer to reduce total costs.

"I tried to be fair with this decision," Villaflor said.

"I know that assisted-living facilities aren't making much money, but they provide a very important service to the community."

The board's chairman also said he and the rest of the board would be studying funding alternatives for the licensing and certification bureau during the next year.