0403 - Div of Human Services General Administration Fund, 8722 - Cons Federal Funds Div Human Services Gen Admn

Sources of Revenue:

General Fund,Other Fund Federal

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The purpose of this bill is to authorize the development and operation of a nursing home on the grounds of nonprofit community health care organizations meeting certain restrictions and exemptions from nursing home moratorium requirements.
    The potential fiscal impact to the Department's Medicaid program is $3,988,674 ($2,879,424 Federal and $1,109,250 State funds).

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 3,988,674 3,988,674
Personal Services 0 0 0
Current Expenses 0 3,988,674 3,988,674
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0

Explanation of above estimates (including long-range effect):

    "The legislation indicates that counties qualifying for the exemption from the nursing home bed moratorium are those without nursing home beds since before the moratorium. There were two counties (Doddridge and Wirt) that have not had nursing home beds since before the moratorium. The legislation allows for 36 beds in each facility, and the Medicaid occupancy rate (statewide based on cost reports filed for the June 2011 cost report period) is 74.4%. The estimated rate of $204 per day is based on the projected rate for a new facility at that bed size, and does not include any adjustment for patient acuity. The estimate would be:
    $204/day x 36 beds x 365 days x 74.4% Medicaid occupancy x 2 facilities = $3,988,674"
    Based on a blended SFY13 FMAP of 72.19%, the $3,988,674 would be $2,879,424 Federal and $1,109,250 State funds.


    The exemption to the nursing home bed moratorium created by the proposed legislation would potentially open an avenue for other facilities to follow. Expanding nursing home bed capacity is not consistent with current Department efforts to increase the availability of home and community based services, and example of which would be the Money Follows the Person program which will provide assistance to nursing home residents in transitioning out of a nursing home and into the community.

    Person submitting Fiscal Note: Michael J. Lewis, M.D., Ph.D.
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