Subcommittee hears warnings that Medicaid cuts are squeezing county nursing homes

County budget staff warned the Revenues and Capital Expenditures Subcommittee that reductions in state Medicaid rates and new county charges are squeezing nursing home finances and could threaten some operators.

Bauer told the committee that recent changes reduced reimbursement rates for nursing facilities; he cited examples from the budget message showing other facilities faced per-diem losses of $10 to $35 per day. "I really have no idea how some of these nursing homes are gonna stay in business, frankly," Bauer said when describing the depth of cuts.

Bauer noted Riverside is almost entirely Medicaid-funded and that private-pay residents are rare. He said Riversides Special Care Unit (SBU) recently increased to 38 residents and that the SBU produced an approximate $532,000 increase in projected revenue for the county's estimates.

Members asked whether county nursing oversight would be specifically at risk; Bauer said the county had budgeted for the loss and that taxpayers ultimately cover differences when facilities operate primarily on Medicaid. Representative Schmidt and others urged continued monitoring and constituent communication about similar proposals in other jurisdictions.

Bauer referenced a state legislator, identified in the meeting as Senator Virginia Birdsdell, who introduced a bill that could affect nursing home funding; staff said the bills prospects were uncertain. The subcommittee did not adopt a specific remedial action; staff offered to provide additional details and historical grant information at membersrequest.