Vencor Inc., which runs more than 300 homes across the country,
discharged
some senior citizens in Florida and Indiana. Complaints since have caused
the
Louisville, Ky.-based company to reconsider that.
But Paul Willging, executive vice president of the American Health Care
Association, which advocates for nursing homes, said, ``I think it is a
harbinger. ... We're going to see more of this.''
More than 70 percent of nursing homes are in business for profit - many
are
part of giant companies like Vencor - and they are showing signs of
chafing
under the Medicaid system.
Vencor executives, who declined to be interviewed, have said their $3.1
billion company is losing money on its Medicaid patients. They believe
they
can fill homes instead with individuals who can pay their own way.
On average, state Medicaid programs pay about $27 less than what nursing
homes
can charge private payers.
In an April 9 statement, Vencor chairman and chief executive W. Bruce
Lunsford
said Medicaid payments to nursing homes are inadequate, and he criticized
a
decision by federal budget-balancers to give states even more freedom to
dictate prices.
Lunsford apologized for any inconvenience or anxiety the company's
actions
caused patients and their families, but he said, ``Hopefully this
situation
will increase public awareness and raise the national debate.''
Because two-thirds of nursing home patients rely on Medicaid to help pay
bills, analysts say it is unlikely that beds for those in need will
become
scarce.
But baby boomers are expected to be more affluent in old age than their
parents, and catering to the elderly well-to-do is ``an increasing
market,''
said Willging.
``Those who can afford quality are going to get quality. Those who are
going
to get stuck on a welfare program are going to get what states are
willing to
pay for,'' he said.
Some in Congress recently introduced legislation that would prohibit the
outright eviction of Medicaid patients, but such companies as Vencor
continue
to tell stockholders their goal is to increase wealthy private payers.
``We do believe Medicaid is going to be in financial meltdown,'' Willging
said.
AP-NY-05-15-98 1342EDT
Copyright 1998 The Associated Press. The information contained in the
AP
news report may not be published, broadcast, rewritten or otherwise
distributed without prior written authority of The Associated Press.
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