It was 1984 when the popular TV show was Hill Street Blues. The top movie was Indiana Jones and the Temple of Doom. You could buy a Dodge Ram 50 truck new for $8,900 and a gallon of gas was $1.10. It was the same year that our current Medicaid rate at Maplewood is based upon. For all the Nursing Homes that have been bought, sold or built since 1984 there has been a situation where the year of their transfer was the year they became locked in time for Medicaid payment purposes. So at Maplewood our Mediciad rate is based upon what our cost were 26 years ago trended forward. The state has promised to update these rates to 2002 but nothing yet.
On top of this outdated reimbursement methodology the state is in a financial crisis that it cannot seem to find its way out of. Education, Healthcare and Prisons are the States biggest costs and all of these areas will inevitably take a big hit as the state heads into a financial meltdown. Nursing Homes and healthcare providers that rely on State funding the most will suffer the most. Services will be cut beyond the bone and many will fail. the final blow in all of this is that the new Federal Healthcare system that was voted in a month ago does less than nothing for those needing nursing home care. Our political leaders actually found it to be prudent to cut the Medicare system to pay for their universal healthcare bill.
Our healthcare system is in a real state of transition. Where this all comes out is anyones guess. I think the only bright spot here is that this is all going on at a time when the Pepsi generation is moving into retirement and beyond. As this demographic has moved through the 70s, 80s, 90s you saw a huge swing in services and retail to cater to this influential group. I think we will see the same thing in Long Term Care and Rehabilitative Care as well. Once they figure out what is happening here, they will not stand for it. We will see great change in the next 10 years in terms of what goods and serrvices are available for the 75-100 year old age group.