October 27th, 2009

Reports the Bradford Era:

Along with a growing elderly population, area nursing homes may face challenges in providing quality care as Medicare funding decreases and legislators propose more cuts.

In early October, the federal Centers for Medicare and Medicaid Services adjusted its Medicare rates, cutting approximately $12 billion nationwide over the next ten years.

Proposed Congressional bills could intensify the Medicare cuts by trimming additional funding to skilled nursing facilities over the same time period.

The leading House bill, HR 3200, would cut $2.1 billion to Medicare in Pennsylvania alone, according to a study by the American Health Care Association.

A bill sponsored by the Senate Finance Committee would cut $14 billion to skilled nursing facilities, said U.S. Rep. Glenn Thompson, R-Pa.

Thompson said that will be a major blow to nursing facilities that normally operate with a profit margin between 1 and 3 percent.

“Those operations are lean at this point,” said Thompson, who has spent 28 years in the health care industry.

He added it’s the governments responsibility to serve those who can’t help themselves.

George E. Leonhardt, president and chief executive officer of Bradford Regional Medical Center, said it’s unclear what cuts may or may not occur in health care reform.

“Proposed Medicare cuts to hospitals, skilled-care nursing homes and other health care providers can only be addressed and planned for when they occur,” Leonhardt said.

Read more at the Bradford Era.