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Attention Rhode Island Nursing Homes

September 27, 2017
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The Rhode Island Executive Office of Health and Human Services has issued a public notice, dated September 27, 2017, regarding a proposed amendment to the Medicaid State Plan relating to Medicaid fee-for-service RUG rates, effective 10/1/2017.  This proposed amendment will be submitted to Centers for Medicare & Medicaid Services for its approval.

The proposed amendment will:

  1. Phase out the Direct Care policy adjustor in 25% percent increments, effective October 1, 2017. (Note: This adjustor was provided to those nursing homes whose direct care reimbursement would have decreased significantly as a result of the change to the price based system in 2010); and
  2. Implement a rate freeze to all components of a nursing home’s Medicaid fee-for-service RUG rates for the 12-month period beginning October 1, 2017, except for the Direct Care policy adjustor noted above and property and tangible taxes, which are cost based.

Your Citrin Cooperman advisors have calculated the potential financial impact of these amendments and will share this information with you, upon request.   

If you have any questions or concerns, please contact your Citrin Cooperman advisor.