MONROE - Pleasant View Nursing Home's financial problems are symptomatic of concerns at other public nursing homes across the state because the state doesn't reimburse county homes enough money to cover costs for Medicaid residents.
Brian Schoeneck, financial services director for the Wisconsin Association of Homes and Services for the Aging, told the Pleasant View Nursing Home Committee that public nursing homes, such as Pleasant View, generate millions of dollars for the state from the federal government every year. However, the state doesn't reimburse the county homes as much as it should and uses the money for its Medicaid Trust Fund deficits.
Schoeneck has worked with nursing homes for about 30 years, Pleasant View Nursing Home Administrator Don Stoor told the committee.
The committee invited him to its Thursday meeting to find out more about the financial issues that affect Pleasant View.
In 2008, Pleasant View Nursing Home had a deficit of about $900,000. Schoeneck told the committee the deficit wasn't a result of poor management by anyone at the nursing home.
Schoeneck explained that nursing homes don't receive enough money for Medicaid patients. He said that is the reason private nursing homes prefer not to take them. Private nursing homes can make more money by taking Medicare patients or patients that are rehabilitating from surgery. That allows private homes to have higher patient turnover rates, enabling them to make more money, he said.
Medicaid residents are in nursing homes for a longer period of time and require more assistance, he said.
About 70 percent of Pleasant View's residents receive Medicare. About 20 percent of the nursing home's residents are diagnosed with dementia, have complex medical needs and are Medicaid residents other nursing homes won't accept.
Schoeneck told the committee that in 2006-07, the latest statistics available, 96 percent of all public nursing homes in the state suffered Medicaid losses and the average 100-bed nursing home lost about $34.50 per resident every day. In addition, Pleasant View loses another $13 a day in support services, such as fuel and utilities, dietary services and environmental costs. Schoeneck said the state allows nursing homes to spend $43.86 in those services every day, but Pleasant View spends $57.12 every day. However, nursing homes statewide spend an average of $60.43 every day for the services, so Pleasant View loses less money than other homes in the state.
"There are very few homes that can stay within the $43.86 established by the state," Schoeneck said.
If the county would decide to close the nursing home, and Schoeneck didn't make any suggestions in favor or against the idea, he said the county still would be required by the state to provide housing for some residents. People who are ordered to a nursing home by the court because they are a danger to themselves or others still would have to be taken care of by the county. Pleasant View has 14 residents who meet that requirement.
To send a resident to Mendota, the county would have to pay Mendota $741 a day for each resident, or about $3.8 million a year. That cost would be transferred to Green County Human Services, Schoeneck said, and that would have a negative impact on the county if it has to contend with a 2 percent levy limit imposed by the state.
He said another factor the county needed to consider is that Mendota might not have room for all the residents. Green County would have to look for other state homes in other counties for the residents. But as other counties find themselves wrestling with budget issues, residents from other counties often aren't accepted.
In addition, if the county closed Pleasant View, Green County would lose 28 jobs and about $588,000 in personal income.
Green County Board of Supervisors Chairman Art Carter said the information Schoeneck presented to the committee will be shown to Rep. Brett Davis, R-Oregon, and Sen. Jon Erpenbach, D-Waunakee, when they attend the February Green County Board meeting. He said the information would be useful to explain to the legislators why the county is concerned about financing the nursing home and how much the 2 percent spending limit affects the nursing home and county's future.
Brian Schoeneck, financial services director for the Wisconsin Association of Homes and Services for the Aging, told the Pleasant View Nursing Home Committee that public nursing homes, such as Pleasant View, generate millions of dollars for the state from the federal government every year. However, the state doesn't reimburse the county homes as much as it should and uses the money for its Medicaid Trust Fund deficits.
Schoeneck has worked with nursing homes for about 30 years, Pleasant View Nursing Home Administrator Don Stoor told the committee.
The committee invited him to its Thursday meeting to find out more about the financial issues that affect Pleasant View.
In 2008, Pleasant View Nursing Home had a deficit of about $900,000. Schoeneck told the committee the deficit wasn't a result of poor management by anyone at the nursing home.
Schoeneck explained that nursing homes don't receive enough money for Medicaid patients. He said that is the reason private nursing homes prefer not to take them. Private nursing homes can make more money by taking Medicare patients or patients that are rehabilitating from surgery. That allows private homes to have higher patient turnover rates, enabling them to make more money, he said.
Medicaid residents are in nursing homes for a longer period of time and require more assistance, he said.
About 70 percent of Pleasant View's residents receive Medicare. About 20 percent of the nursing home's residents are diagnosed with dementia, have complex medical needs and are Medicaid residents other nursing homes won't accept.
Schoeneck told the committee that in 2006-07, the latest statistics available, 96 percent of all public nursing homes in the state suffered Medicaid losses and the average 100-bed nursing home lost about $34.50 per resident every day. In addition, Pleasant View loses another $13 a day in support services, such as fuel and utilities, dietary services and environmental costs. Schoeneck said the state allows nursing homes to spend $43.86 in those services every day, but Pleasant View spends $57.12 every day. However, nursing homes statewide spend an average of $60.43 every day for the services, so Pleasant View loses less money than other homes in the state.
"There are very few homes that can stay within the $43.86 established by the state," Schoeneck said.
If the county would decide to close the nursing home, and Schoeneck didn't make any suggestions in favor or against the idea, he said the county still would be required by the state to provide housing for some residents. People who are ordered to a nursing home by the court because they are a danger to themselves or others still would have to be taken care of by the county. Pleasant View has 14 residents who meet that requirement.
To send a resident to Mendota, the county would have to pay Mendota $741 a day for each resident, or about $3.8 million a year. That cost would be transferred to Green County Human Services, Schoeneck said, and that would have a negative impact on the county if it has to contend with a 2 percent levy limit imposed by the state.
He said another factor the county needed to consider is that Mendota might not have room for all the residents. Green County would have to look for other state homes in other counties for the residents. But as other counties find themselves wrestling with budget issues, residents from other counties often aren't accepted.
In addition, if the county closed Pleasant View, Green County would lose 28 jobs and about $588,000 in personal income.
Green County Board of Supervisors Chairman Art Carter said the information Schoeneck presented to the committee will be shown to Rep. Brett Davis, R-Oregon, and Sen. Jon Erpenbach, D-Waunakee, when they attend the February Green County Board meeting. He said the information would be useful to explain to the legislators why the county is concerned about financing the nursing home and how much the 2 percent spending limit affects the nursing home and county's future.