Preserving Quality Long-Term Care in the Tri-Lakes:
New York State Executive Budget Effects on Mercy/Uihlein Nursing Homes
March 13th, 2006
SARANAC LAKE – Two area nursing homes, Uihlein Mercy Center in Lake Placid and Mercy Healthcare Center in Tupper Lake, could be negatively affected by Governor Pataki’s proposed Executive Budget to the tune of $200,000 in 2006 and 2007. This could be a devastating blow to the only long-term care facilities in the Tri-Lakes Region, considering that the nursing homes are currently suffering from dramatic financial losses due to the current Medicaid reimbursement rate.
Due to the woefully inadequate Medicaid reimbursement received by the two nursing homes over the last several years, Adirondack Medical Center is acquiring Uihlein/Mercy in 2006 and 2007, a decision motivated by its desire to preserve long-term healthcare in the Tri-Lakes area.
According to Uihlein/Mercy Corporation’s Chief Financial Officer, William Chapin, the immediate “big money” item on the proposed budget is the elimination of the Medicaid trend factor, a component that allows for reimbursement rates to grow each year as the cost of services do. Under the present Medicaid reimbursement methodology, the elimination of the trend factor would create a $200,000 negative impact on Uihlein/Mercy annually.
Medicaid reimbursement rates in New York State are based on 1983 costs – the oldest base year in the country. This means that Uihlein Mercy Center receives approximately $135.00 per patient per day, when in fact it costs over $180.00 to care for that patient. Mercy Healthcare Center receives a much lower reimbursement of $121.00 per patient per day, when it costs them over $170.00 to care for their Medicaid patients. On any given day, at least 85% of Uihlein/Mercy patients qualify for Medicaid, thus creating quite a financial burden due to the low and outdated reimbursement rates.
The Joint Association Task Force, comprised of the New York Association of Home & Health Services for the Aging (NYAHSA), the Healthcare Association of New York State (HANYS), and the New York State Health Facilities Association, Inc. (NYSHFA), strongly opposes the detrimental items in the budget and is calling for the passage of a comprehensive plan to stabilize and protect New York’s nursing homes and enhance the quality of care. This plan, the Health Care Security for New Yorkers
Financing Reform Bill (S.5881/A.8983) includes many counters to the proposed budget ensuring that New York State nursing homes remain unscathed by the proposed budget cuts and is able to meet the needs of the elderly and unwell with quality long-term care services.
The Task Force’s plan proposes to reform the Medicaid payment methodology updating Medicaid reimbursements to reflect more current data. This will result in an average 12.2% increase in reimbursement to New York State nursing homes. This plan also calls for a re-base every 5-6 years, to
eliminate the current situation of nursing homes suffering financial losses due to insufficient reimbursement for the rising cost of services.
Another important point in the proposal is special adjustments for unique care for patients with special needs such as dementia and behavioral problems. Because it costs more money to care for special needs patients, nursing homes are losing even more money on the care they give their most vulnerable residents. In the proposed budget, there is no provision for these services, yet they must continue.
Uihlein/Mercy is advocating for the passage of the Health Care Security for New Yorkers Financing Reform Bill (S.5881/A.8983). Uihlein/Mercy employees and the families of residents at Uihlein and Mercy have written over 120 letters to Assemblyman Chris Ortloff, Assemblywoman Teresa Sayward and Senator Elizabeth Little. Donna Beal, Director of Development for the Uihlein/Mercy Health Foundation attended an advocacy meeting in Albany, joining over 250 employees, administrators and residents from New York State nursing homes. She visited many legislative offices, leaving them full briefing packets to support the bill for the Health Care Security for New Yorkers Financing Reform. “We must continue to give long-term care to our community,” says Beal. “Cooperating together, the Sisters of Mercy and AMC are committed to continue a holistic approach to long-term care, but we must have adequate financial resources to make it happen.”
The executive budget, as proposed, must not be adopted to ensure that the Tri-Lake’s elderly, unwell and their families continue to have access to nursing homes when they need them most. We ask that the members of the Tri-Lakes community write and urge our area’s representatives to support the Health Care Security for New Yorkers Financing Reform Bill in order to continue care of the mind, body and spirit for our community’s sickest and most vulnerable residents.
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