Illinois ’s Medicaid funding crisis, which includes inadequate reimbursement rates and billions of dollars in overdue bills, is being cited as the cause for the closing of the Fair Oaks Long-Term Care Facility in Greenville.
State Sen. Kyle McCarter (R-Lebanon) brought the plight of Fair Oaks to the attention of the Illinois Senate as Senators were preparing for a day of debate on dozens of new bills.
“They announced that they will be closing because of an inability to operate due to a $300,000 loss every year and the two and a half million dollars the state owes them,” said McCarter.
McCarter told colleagues that Fair Oaks is reimbursed $109 dollars per day for each patient while the actual costs are $140 per day. Illinois ranks near the bottom of the 50 states for Medicaid reimbursement rates to nursing homes and owes about $2.5 billion ($2,500,000,000) in overdue Medicaid bills to hundreds of healthcare providers across the state.
The 54th District Senator said Fair Oaks’ closing is a casualty of a broken Medicaid system.
“When we look at numbers, sometimes we don’t translate them into actual people,” said McCarter.
With Fair Oaks closing, 63 patients will be turned away and 70 employees won’t have a job. The facility is also associated with Greenville Regional Hospital , whose staff has provided Fair Oaks patients with dietary service, laundry and housecleaning.
One guardian of a Fair Oaks resident received notification that they must have their loved one moved by July 1, 2013. The announcement comes just one month after the Illinois Department of Public Health was informed by Colonial Manor owners that it could not afford to stay open and only had enough food to feed its developmentally disabled residents for three days.
The announcement also comes as the Illinois Department of Human Services (DHS) says there is adequate funding to provide residents of the Warren G. Murray Developmental Center in Centralia with the proper support needed to live in the community, even with 24 hour care.