Las Vegas Sun

March 29, 2024

Medicaid cutbacks could force nursing home closures, official says

Sun Coverage

CARSON CITY – Nevada’s nursing homes already are losing money on treating elderly patients in the state-operated Medicaid program and another proposed reduction would be challenged in court, an official said today.

Gov. Brian Sandoval’s proposed budget calls for 15 percent cutbacks, and nursing homes might have to reduce their beds or close, said Renny Ashleman, lobbyist for the Nevada Health Care Association.

A Senate-Assembly budget subcommittee heard testimony today on the proposed Medicaid budget, which also calls for cutting rates paid to hospitals, doctors and others who care for low-income citizens.

Nursing homes in Nevada lost $27 million last year in treating Medicaid patients, Ashleman said. “This is not sustainable,” he said.

Clouding the issue is a ruling by the U.S. 9th Circuit Court of Appeals that Medicaid rates cannot be reduced until an analysis is done on the effect of the reduction. The case was in California, but applies to Nevada since it is under the jurisdiction of that court.

Chuck Durate, the administrator of Nevada’s Medicaid program, said it has been advised by the state Attorney General’s Office that it can go forward with the proposed cutbacks.

Durate said the decision by the appeals court wasn't clear on what studies have to be completed before any cutbacks could be imposed.

But Ashleman said the state’s rate reduction would “result in multiple lawsuits from providers challenging the unlawful rate cuts.”

Senate Majority Leader Steven Horsford, D-Las Vegas, said the state faced a “legal liability” if it proceeded with the proposed reductions. He said a formal opinion is needed from the attorney general.

Horsford also said it was “not good public policy” to reduce these services just to reach a budget target.

Representatives of nursing homes that care for children told the subcommittee the proposed 15 percent cut in Medicaid payments would severely hurt their businesses.

The subcommittee didn't take action but will be considering the budget in the upcoming weeks.

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