Date Requested:January 31, 2014
Time Requested:11:03 AM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
2014R1795 Introduced HB4332
CBD Subject: NONPROFIT COMMUNITY HEALTH
FUND(S)
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND; 8722 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND
Sources of Revenue
General Fund,Other Fund Federal
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The purpose of this bill is to extend the time that certain nonprofit community groups are exempt from the moratorium on creating new nursing home beds.
    The Department estimates the potential fiscal impact to the Medicaid Program upon implementation in SFY 2017, is approximately $4,165,000 ($2,927,162 Federal and $1,237,828 State funds). Please see note in the memorandum section.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 4,165,000
Personal Services 0 0 0
Current Expenses 0 0 4,165,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The legislation indicates that counties qualifying for the exemption from the nursing home bed moratorium are those without nursing home beds since before the moratorium. There were two counties (Doddridge and Wirt) that have not had nursing home beds since before the moratorium. The legislation allows for 36 beds in each facility, and the Medicaid occupancy rate (statewide based on cost reports filed for the June 2013 cost report period) is 74.41%. The estimated rate of $213 per day is based on the projected rate for a new facility at that bed size, and does not include any adjustment for patient acuity. The estimate would be:
    Total cost is calculated by multiplying the number of potential beds, a total of 72 (36 at each facility), by the daily rate of $213 per day by 365 days per year (72 x $213 x 365 days per year). Total cost for these potential beds is $5,597,640 x 74.41% (Medicaid occupancy rate) = $4,165,000.
    The legislation indicates the facilities would have an extension of until 7/1/16 (SFY17) to apply for a license to operate the facility. Based on a projected blended SFY17 FMAP of 70.28% the $4,165,000 would be $2,927,162 Federal and $1,237,828 State funds.
    


Memorandum
Person submitting Fiscal Note:
Karen L. Bowling
Email Address:
karen.l.bowling@wv.gov
    The exemption to the nursing home bed moratorium created by the proposed legislation would potentially open an avenue for other facilities to follow. Expanding nursing home bed capacity is not consistent with current Bureau for Medical Services efforts to increase the availability of home and community based services, an example of which would be the Money Follows the Person program which will provide assistance to nursing home residents in transitioning out of a nursing home and into the community.