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Virginia Health Care Association | Virginia Center for Assisted Living

FY 2017-2018 State Budget Includes Additional $40 Million for Nursing Centers

FY 2017-2018 State Budget Includes Additional $40 Million for Nursing Centers

The General Assembly took up the budget conference report today, March 11, to finalize the funding plans for fiscal years (FYs) 2017-2018.  Nursing centers will see their Medicaid reimbursement boosted by more than $40 million over the biennium.  The budget includes:

  • Full funding for the 0.9 percent FY 2017 Medicaid inflation increase for nursing centers of $16.4 million.
  • $12.7 million in inflation funding for FY 2018 (this is half of the projected inflation increase of 1.45 percent for FY 2018).
  • $11.2 million to restore the FY 2016 inflation increase, which had previously been deferred and was affected by the Department of Medical Assistance Services’ (DMAS) policy decision to use a “0” instead of the actual inflation rate for 2016 as part of its rebasing forecast.

Of note, these inflationary increases will continue to have significant impacts beyond the 2017-2018 biennium.

VHCA-VCAL is gratified that Gov. Terry McAuliffe in his introduced budget and the House of Delegates and Senate in their conference report have made such a significant investment in Medicaid funding for long term care services.  The following charts depict the budget impacts for nursing centers in the Commonwealth.

031116 Cumulative NF Inflation-Related Reimbursement Impact of Budget





031116 Small Table_New Funding for 2017_18

Click image for larger view.

Other long term care-related budget items include:

  • Creation of a work group to determine if the Alzheimer’s Assisted Living Grant program can be altered to satisfy CMS requirements for home and community based care services.
  • A requirement that the General Assembly have the opportunity to evaluate the Delivery System Reform Incentive Program (DSRIP) in 2017 before it can move forward.
  • $450,000 for the development of a comprehensive plan for geropsychiatric services in the Commonwealth.  The report is due to the General Assembly by November 15.
  • $250,000 to study whether Hancock Geriatric Treatment Center can be recertified by CMS to care for Medicaid patients.
  • Elimination of all funding that was to be used to plan for the closure of Catawba Hospital.
  • A requirement for the Department for Aging and Rehabilitative Services to report on its progress towards implementing the “Interdisciplinary Memory Assessment Clinics with Dementia Care Management” as described in the Dementia State Plan.
  • A requirement that DMAS provide its Medicaid forecast to the House Appropriations and Senate Finance Committees on November 1 after meeting with committee staff on October 15. DMAS must also submit monthly spending reports to the committees.

The budget must still undergo review by the governor, who has until mid-April to offer any amendments that would then be voted up or down by the General Assembly during its reconvened session on April 20.