§ 46:2741 — Legislative findings and purpose

§2741. Legislative findings and purpose
A.(1) The current methodology for reimbursement of services to Medicaid recipients
provided by nursing homes was implemented in 1984 prior to major changes in federal laws
relative to nursing home staffing, provision of patient care, enforcement, and regulatory
requirements.
(2) The current methodology did not anticipate changes in Medicare and other health
insurance programs that have resulted in patients with more complex medical problems being
discharged to nursing homes.
(3) The current methodology provides a disincentive for capital formation to
maintain and update physical plants of nursing homes and provides a disincentive to admit
patients with high care needs.
(4) The legislature finds that a number of state Medicaid programs have adopted case
mix reimbursement systems which factor into nursing homes' rates the care level and
resource needs of the patients receiving services.
(5) The legislature further finds that a rental system for reimbursing capital costs
would encourage investment in the renovation and replacement of nursing homes, creating
a more homelike environment and better quality of life for the patients.
B. The purpose of this Chapter is to change the reimbursement methodology for
nursing homes' services reimbursed through the Medicaid program to ensure that nursing
homes are paid a rate that is reasonable and adequate.

Legislative History

Acts 2001, No. 694, §1, eff. July 1, 2001; Acts 2022, No. 271, §5.