FISCAL NOTE
Date Requested: January 12, 2024
Time Requested: 11:41 AM |
| Agency: |
Health Facilities, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1167 |
Introduced |
HB4413 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
0409 - Health Facilities - Lakin Hospital; 5156 - Hospital Services Revenue Account
Sources of Revenue:
Other Fund General and Special
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to limit nursing home rooms to 2 residents.
The Department of Health Facilities (DHF) oversees the operations of Lakin State Hospital, a long-term care nursing facility licensed for 114 residents. Our current floor plan has 38 resident rooms with each room being licensed for 3 beds.
The passage of this bill would reduce the bed availability at Lakin from 114 beds to 76 beds. The current average medicaid rate in the state of West Virginia for nursing homes is $299.17/day. However, due to the current national nursing staff crisis, Lakin is unable to staff for 76 beds. Our current (staffed) bed capacity is 65 and our census is 65. With this in mind, there would be no immediate fiscal impact other than the potential to sell the excess 38 beds.This reduction in beds would reduce our potential annual revenue by $4,149,487.90 (38 beds x 365 days x $299.17).
The passage of this bill would reduce the bed availability at Lakin from 114 beds to 76 beds. The average census at Lakin has been consistently lower than 76 residents,
therefore no reduction in expenditures would be realized.
The DHF could potentially realize one-time revenue of $3,697,400 (38 beds * $97,300) if we are able to sell the 38 licensed beds.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
3,697,400 |
0 |
Explanation of above estimates (including long-range effect):
According to an article in McKnight's Long-term Care News from November 2, 2022, the price per (nursing care) bed at the end of the third quarter averaged $97,300. If the sale of 38 licensed beds were to take place, one-time revenue realized would be $3,697,400 (97,300 x 38 beds).
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Michael J. Caruso
Email Address: dhhrbudgetoffice@wv.gov