A coalition of nursing home providers filed a lawsuit against New York Oct. 25, claiming the state illegally cut $352 million in Medicaid funding, according to a USA Today Network affiliate The Journal News.
New York's health department updated its reimbursement rate for nursing homes in July. The lawsuit alleges this change will result in funding cuts that could force some nursing homes to shut down or reduce staffing and service for thousands of patients.
"A cut of this magnitude will directly jeopardize access to quality resident care," James Clyne Jr., president of LeadingAge NY, a nonprofit group participating in the lawsuit, told The Journal News. Other trade groups involved in the suit are New York State Health Facilities Association, Southern New York Association, Greater New York Health Care Facilities Association and Continuing Care Leadership Coalition.
The Medicaid rate change was made to ensure that nursing homes are compensated fairly based on the needs of the 80,000 New Yorkers they care for annually, health officials said Oct. 25.
"The department does not expect this change to result in any disruption to nursing home residents and the care they receive, and is reviewing the court case," officials wrote in an email to The Journal News.
The new reimbursement rates were based on a six-month average of nursing home needs, instead of using two specific days a year, as previously done, according to health officials.
The lawsuit alleges officials did not receive required approval from CMS to adjust their case mix index and seeks to stop the funding cuts during litigation. The coalition says the state estimated the cut would save $246 million over nine months and was set to meet state budgetary needs, not those of nursing home patients, according to the suit.