California Nursing Homes Continue to Profit Under Governor Schwarzenegger
California bill AB 1629 was enacted by the California state legislature in 2004. Added at the last minute and under the radar, it was designed to establish a new reimbursement system for Med-Cal payments to nursing homes and provide substantial annual increases for nursing home owners. It provided an 11% increase in administrator's wages and provided an estimated $150-200 million in annual profits for the facility owners. Even the worst homes in the state profited under this law. The law was set to extinguish this year but has been extended until 2009. Governor Schwarzenegger and California legislature are recommending a two year extension with no further changes. Governor Schwarzenegger's current proposed budget is cutting public services for the elderly and disabled. Nursing homes appear to be the only Medi-
Cal providers who will see a profit - while complaints of mistreatment have risen 38% since the law took effect.
To read more on this subject, go to Publicly-Funded Nursing Home Profits Protected in California Budget While Vital Services Cut for Seniors and People with Disabilities.
