California Governor Jerry Brown released the May Revision to the 2013-14 state budget last week.
The California Hospital Association posted information about the revised budget on its website, including the following:
Described by Gov. Brown’s administration as “the most stable fiscal footing in well over a decade,” the May revision of the state’s 2013-14 budget maintains a $1.1 billion reserve. The revision does not include a reversal of the Medi-Cal cuts to distinct-part skilled-nursing facilities. It does include a plan to move forward with the expansion of Medi-Cal using a state-based approach and maintaining the level of benefits provided to current beneficiaries, including county-based specialty mental health and substance use disorder services. The state proposes to include long-term care as a covered service if the federal government approves certain eligibility criteria. With the shift of responsibility from counties to the state, the revised budget estimates a fiscal transfer of $300 million from local health programs in 2013-14, increasing to a $1.3 billion shift by 2015-16.
By not reversing the AB97 DPNF rate cuts, the threat still lurks of DHCS taking back payments already made to DPNFs who can ill-afford it and who will be forced into bankruptcy, sale or closure. The cuts would be made retroactively to June 1, 2011, and with each passing month, the potential payback for these facilities grows and grows. District and municipal DPNFs can obtain some relief through a supplemental payment program, but that program would only pay half of the amounts cut and involves delays in the processing of quarterly claim forms. For many facilities, this relief is not enough to forestall drastic measures
For more information contact John Pfeiffer at 510-867-1314 (email)