South Dakota governor to address nursing home funding crisis

In her first budget address Jan. 23, South Dakota Gov. Kristi Noem will discuss underfunding of state nursing homes that has resulted in numerous closures, according to the Rapid City Journal.

Three South Dakota nursing homes have closed in the last three years, and two more are set to close in February.

Another 17 former Golden Living Centers are facing financial troubles and are being run by a state-approved receivership created after the New Jersey firm operating the homes went bankrupt in last year.

More closures are likely unless South Dakota improves its payment rate under Medicaid, which pays for about 55 percent of the patients in the state's roughly 110 nursing homes, according to industry officials.

A spokesperson for the governor told the Journal Ms. Noem "intends to address nursing home funding and larger model of care issues in her budget address" but did not give specific details on her ideas.

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