Long-term care providers in Pennsylvania are accusing the state of withholding more than $150 million in federal funding meant to support nursing homes during the public health crisis.
The Pennsylvania Health Care Association, LeadingAge PA and the Pennsylvania Coalition of Affiliated Healthcare & Living Communities filed a lawsuit against the state and demanded that state officials reallocate the funding to providers, saying the state cannot “re-appropriate the funds to fill holes in the budget.” Providers filed the suit Monday in the Commonwealth Court of Pennsylvania.
“Federal lawmakers specifically designated more than $150 million to help caregivers reeling under the financial costs of this ongoing pandemic,” LeadingAge PA President Adam Marles said in a statement.
“We were forced to file this lawsuit because the administration is simply ignoring clear language in Pennsylvania law that requires all of these funds to be paid to nursing facilities,” Marles added.
The lawsuit stems from increased Medicaid funding provided through the Families First Coronavirus Response Act, which was the first federal stimulus package for the COVID-19 pandemic. The enhanced funding resulted in about $153 million for state nursing homes, but “despite clear state and federal law, the [Pennsylvania Department of Health] has refused to pay this,” the provider groups said.
The lawsuit also explained that Pennsylvania law requires long-term care facilities to pay assessments to assist the state in generating necessary federal funding for its Medicaid obligations, and accuses officials of not providing the supplemental payments to nursing homes as required by law.
“The department’s refusal to distribute the federal funds is particularly egregious here because the funds were only received as a result of assessments paid by the nursing facilities,” the lawsuit states. “In other words, the Department is taking money earned from the contributions of cash-strapped nursing facilities and using the funds derived from those contributions to support other programs instead of nursing facility services.”
Zach Shamberg, PHCA’s president and CEO, added that providers know the Pennsylvania officials want the best for long-term care residents; the best way to achieve the shared goal is for the state to immediately distribute the funds.
“Despite our best efforts during months of negotiations, the commonwealth has refused to distribute this funding to our long-term care providers on the front lines of the COVID-19 pandemic, jeopardizing mitigation efforts and the safety of the residents in our care,” Shamberg said.
