VHCA was invited to provide public comments before the Provider Assessment Work Group on October 28.  The work group is analyzing the options for creating a provider assessment program in the Commonwealth.  We noted in our comments that the association could not support the application of a provider assessment on our member nursing facilities.

Novel Martin, CFO and Treasurer of Medical Facilities of America, Inc. represents VHCA and the long term care profession on the work group.

Steve Ford, VHCA’s Senior Vice President of Policy and Reimbursement, who offered comments on behalf of the association noted that based on members’ experiences in other states, we have identified several concerns with this approach to Medicaid financing for nursing centers.

VHCA’s concerns included the following points:

• Implementation of a provider assessment would likely create winners and losers for our nursing centers, disadvantaging some centers over others.
• VHCA members have also experienced, over time, that revenue from a provider assessment gradually transitions from enhanced payment to assessed providers to a substitution of what would have been state funding of the services provided absent the assessment.
• Funding mechanisms may not remain intact as federal budget pressures continue to increase.

Secretary of Health and Human Resources William A. Hazel, Jr., M.D., must report to the House Appropriations and Senate Finance Committees by November 1 the appropriate details regarding the plan and options for a hospital provider assessment program.  The budget language authorizing the work of the group requested that the Secretary’s examine and develop a provider assessment program to hospital services, VHCA continues to closely monitor this issue.