From yesterday's News-Gazette:
The Champaign County Nursing Home, which will have to borrow money from the county to stay afloat, could save money by altering its mix of clients to reduce Medicaid patients – which would go against its tradition of serving the poor.
About 60 percent of its residents are on Medicaid, up from 48 percent in 2000, the first year for which Administrator Andrew Buffenbarger has census records.
About 28 percent are private paid and 10 percent Medicare, which has a higher level of reimbursement.
Taking care of the less-well-off has been part of the county's mission since it ran a poor farm on the same site as county offices.
But the rising proportion of Medicaid residents is hard on the nursing home's finances, Buffenbarger said, because "Medicaid reimbursement is considerably lower than the cost of services."
In other words, if Buffenbarger filled every bed in the new $24 million facility with Medicaid patients, the nursing home would lose even more than the up to $100,000 a month it has lost in the last two years. Instead, the home has run with about 80 of 243 beds empty recently.
Additionally, Medicaid reimbursement has not only been cut by $600,000, it's months behind.
Discuss.
UPDATE: Big E has more thoughts here.
Some apparently expect the home to run on at least a break-even basis. But if that is the case, why is government involved at all? Is there a lack of private nursing home companies out there? Not likely. Why in the world would an impotent county government imagine that it is in a better position than a professional private company to run this operation? If the goal is to minimize expense to taxpayers, sell the damn thing to a professional operator and cut your losses.
It is not a little ironic that the idea of booting impoverished Medicaid recipients is being floated. If the goal of the facility is to provide refuge to those who would otherwise be out in the cold, this step would be absolutely contraindicated.
So what's it going to be, you dummies? A decision to provide heavily-subsidized care, or to make the facility a self-sufficient enterprise? The choices could not be more stark, but resolution will require courage and clear-thinking. I, for one, am not holding my breath.