Long-Term Care

Medicaid Cuts Close South Dakota Nursing Homes

Contemporary Long-Term Care Weekly, August 15, 2006

In the past five years, nursing homes in three South Dakota towns have closed due to the Medicaid funding gap, according to the Rapid City Journal. In 2006, nursing homes in that state will continue to lose nearly $23 a day on Medicaid residents.

The government pays about two-thirds of Medicaid costs, while the state is responsible for the remaining third. Money for Medicaid is sparse in South Dakota because the state has to spread a tight budget over several programs, the newspaper reported. The American Health Care Association conducted a study on Medicaid funding in nursing homes and found that in 2006 nursing homes are projected to lose $4.5 billion in reimbursements, a 3.1% drop since 2004.

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