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Nursing Homes Will Feel The Pain If Medi-Cal Cuts Are Approved

Audio

Aired 3/10/11

A new report reveals California's skilled-nursing industry supports more than 179,000 jobs. Advocates say some of those jobs could be in jeopardy if a proposed cut in Medi-Cal payments is approved.

— A new report reveals California's skilled nursing industry supports more than 179,000 jobs. Advocates say some of those jobs could be in jeopardy if a proposed cut in Medi-Cal payments is approved.

To save money, Gov. Jerry Brown wants to cut Medi-Cal payments to nursing homes by 10 percent. About two-thirds of all nursing home residents are on Medi-Cal.

Deborah Pacyna is with the California Association of Health Facilities. She said if that cut goes through, Medi-Cal providers will be reimbursed at only 84 percent of their costs.

"People who deliver care to Medi-Cal populations just can't move forward and pay the bills, if they're getting 84 percent of what they're supposed to be getting. So the end result is going to be job losses," she said.

The courts have rejected previous attempts to cut the rate Medi-Cal pays providers.

There are 1,100 skilled-nursing facilities in California. They care for some 300,000 people.

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