Another Setback For MPTF: Feds Approve 22% Cut In Medi-Cal Reimbursements

It seems as if the Motion Picture and Television Fund can’t win for losing. One step forward then three or four steps back. An agreement with Providence Health & Services to provide acute care ultimately fell through. Then the ousted former head of the MPTF hospital Dr. David Tillman — whom many blame for his role trying to close the Wasserman Campus facilities for acute care — was rehired by cronies as First Chief Medical Officer.  Now the MPTF blog reports the feds have OKd cuts in Medi-Cal reimbursements that amount to a 22% reduction in revenue:

Last Thursday, we were told that CMS (the federal agency, Centers for Medicare and Medicaid) had approved the request of the California Department of Health Services to reduce Medi-Cal reimbursement rates – some by 10% and in our case, for distinct part nursing, by over 22% (10% off of 2008-2009 rates). Now given that almost all of our long-term care and Harry’s Haven residents are Medi-Cal supported, this basically means a 22% reduction in our annual revenues for these services – or $2.2 million. Put it another way: we’re going back to reimbursement rates that are 10% lower than those in 2008 at the same time as we’re paying over 16% more for labor, by far the largest component of our total costs. That’s enough to take your breath away!  While the Department of Health Services’s decision to move ahead with these damaging reimbursement reductions will almost certainly be challenged in court immediately –“stop, delay, reverse” are the objectives — and will likely not be effective for some time, we need to anticipate that they ultimately will come into play and knock over our income statement.

From Saving the Lives of Our Own:

Saving the Lives of Our Own is encouraged that the MPTF is keeping its commitment to the most frail and vulnerable of industry families by pursuing the Medi-Cal funding issue in court. We are willing to serve and intend to join the MPTF as amicus plaintiffs. In solidarity with the Board’s responsibility, our goals are to keep the Long Term Care facility open now and to ensure its future. Anything less would be a betrayal of the Fund’s historical mission.

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