Nevada nursing homes in crisis, seek state help, cooperation

Nearly half of Nevada's nursing homes are bankrupt but the Guinn administration is showing ''a lack of commitment'' to resolve the crisis, lawmakers were told Tuesday.

Michael Clark, executive director of the Nevada Health Care Association, told an interim legislative panel on health care that his group and the Nevada Hospital Association have tried repeatedly to get help from the state Department of Human Resources.

''We do not get results there. What we do see is the buck being passed again and again,'' Clark said a prepared statement. ''They have an excuse for not acting on just about any issue we wish to discuss.''

''The only way to save health care in Nevada is to pump more money into the system,'' Clark said, adding, ''I know how much you don't want to hear health care providers pleading for more funds, but it is the only answer.''

The problems in Nevada - 22 of 47 nursing homes in bankruptcy proceedings - mirror what's happening around the country. More than 1,600 of the nation's 17,000 nursing homes have filed for bankruptcy since last fall.

All the homes struggle with federal funding cuts, a lack of local or state money, increased insurance costs and tougher quality-care standards. For some, the bankruptcy filings have resulted from bad business decisions, heavy debt loads and claims of defrauding government health care programs.

Most of the bankrupt homes have remained open while they try to get their finances in order. But many other homes have closed or laid off employees.

Nevada's high bankruptcy rate is due mainly to the early February filing by Integrated Health Services Inc., which has more than 400 homes around the nation. The Sparks, Md.-based company owns 15 of the 22 Nevada homes now under Chapter 11 bankruptcy protection.

Dallas Adams of IHS told lawmakers that Nevada can owe up to $14 million to his corporation at any one time in Medicaid payments, and may have to write off $5.5 million that's overdue. If IHS has to close some of its Nevada homes, as many as 800 elderly and infirm people would have to find other homes, company representatives said.

Problems with the state include its lack of computer programs for processing such funds, a billing cycle that's shorter than most states, and rejection of bills for what often are only slight errors, Adams said.

''Bluntly, Nevada is not paying its bills,'' added Tom Hathaway, who operates IHS's Washoe Care Center in Reno.

State Human Resources Director Charlotte Crawford, who oversees the Medicaid program, said the state is trying to work with the nursing homes in many areas.

''Our intent in the Medicaid program is not to evade payment,'' she said. ''But we do have to have a certain orderliness.''

''The division has worked diligently with the industry,'' she added. ''We do not want to hurt the industry or any provider group.''

Assemblywoman Ellen Koivisto, D-Las Vegas, who chairs the legislative study committee, said the panel will have to follow up on the industry concerns later.

Sen. Maurice Washington, R-Reno, said representatives from Gov. Kenny Guinn's office should be on hand for the next meeting, adding, ''We've hit a hot button. I think we're only scratching the surface.''