What are excess Medicaid beds?
As many as 30 percent of the Medicaid beds in Texas skilled nursing facilities are empty. That’s well over the national average of about 12 percent and a solid indicator that growth in the state’s Medicaid Bed Allocation Program needs to be controlled. When a long term care facility cannot fill its beds, fixed costs must be managed by cutting costs and charging more.
How did it get this way?
Over the years, the state has awarded exceptions and waivers with the best intentions. But cumulatively, these exemptions and waivers have resulted in the state having little or no control to regulate the number of Medicaid beds.
How does this affect the quality of long term care in Texas?
Texas’ oversupply of Medicaid beds creates health care price inflation and contributes to staff turnover, healthcare worker shortages, and poor patient care. These higher costs are passed on to private payers and public programs, like Medicaid.
What if nothing is done?
Texas skilled nursing facility operators will continue to struggle to improve the quality of care Texans should expect, but will be forced to cut costs.
What will it cost the taxpayers?
Nothing. Tightening up the state’s Medicaid Bed Allocation Program will improve the quality of care and save taxpayers money.