The reimbursements made, which are paid almost equally by federal and State funds, support the long-term care services that nursing facilities provide.
Nursing facilities are the major providers of long-term care services in Virginia.
The study mandate reflected legislative concern that State reimbursements may not be adequate. Nursing facilities have indicated their belief that they have legitimate, approved costs for services that are not recognized by the State s reimbursement methodology. This report was prepared to address SJR 463. However, a review of the DMAS reimbursement methodology also indicates that certain components of the methodology have not been adequately updated, and appear to be excessively restrictive. Evidence considered during this review indicates that one of the impacts of unduly restricting the Medicaid reimbursements is that private pay residents appear to subsidize some of the costs of the Medicaid patients.