State helps support nursing homes

By Mike Fogarty

Published: May 28, 2008

Regarding "Budget brew: Let's uncork spending for elderly” (Our Views, May 22): If, as the famous author Pearl S. Buck said, the test of a civilization is the way that it cares for its helpless members, then the Oklahoma Health Care Authority has to be constantly ready for the exam.

As the state's Medicaid agency, OHCA is charged with purchasing health care for many Oklahomans, including our state's young, old, blind and disabled residents, and it is a daunting responsibility. That's especially true this year, as all our programs are faced with meeting growing needs on a standstill budget.

Yes, we face challenges, and we support nursing homes and other providers in their efforts to gain additional funding. But it would be wrong to ignore the significant strides Oklahoma has made to improve the financial situation of our nursing home operators, who rely on state funds for about 70 percent of the nursing facility care provided in Oklahoma.

Since 2000, the Legislature and governor have supported raising the average estimated daily rate per patient for nursing facilities from $66.75 to $125.21, an increase of more than 87 percent. During the same period, rates for physicians rose 27 percent and for inpatient hospital care, 67 percent. Almost $30 of the nursing homes' increase has come in the last five years.

A report by Big 12 accounting firm BDO Seidman prepared for the American Health Care Association in September showed that Oklahoma ranks 11th of 40 states in payment rates for nursing homes. Oklahoma paid 97.4 percent of allowable costs, up from 93.5 percent two years earlier. Only one state, Georgia, paid 100 percent.

Oklahoma also has implemented new programs to reward nursing home operators for focusing on quality of care. "Focus on Excellence,” a new program at OHCA, links nursing home pay to performance on 10 quality indicators. Not only are 89 percent of state nursing facilities participating in the program, but more than 130 of them have already earned quality-based bonuses.

The facilities' star ratings and quality of care information also are posted on a Web site, www.oknursinghomeratings.com, so consumers can have access to the information.

With an aging population, increasingly complex medical conditions and the funding struggles common to all health care providers, we know that our state's nursing facilities are likely to face considerable difficulties in the years to come. But we believe they, too, are up to the test, and we will do our best to see that their needs are not overlooked.

Fogarty is CEO of the Oklahoma Health Care Authority.

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